BJP's missed majority keeps markets rangebound short term. June 4: Nifty and Sensex dropped 6%, and mid/small caps fell 6-7%. The focus shifts to Budget and policies.
Experts believe that the market sentiment is expected to be negative; as the NDA lead is below 300.
Amid volatility, the focus is on FMCG, IT, and private-sector banking. Manufacturing themes are also in focus. PSU Banks have also been significantly volatile.
Sectors driven by government focus, like defense and railways, are expected to suffer by experts. HAL and Bharat Dynamics stocks fell sharply on June 4.