Stocks tumble on the bourses as TDP withdraws support to the Modi govt at the Centre. The news added fuel to the brewing political crisis after BJP had lost the by-polls and other party’s including the Shiv Sena too may do likewise which means there could be early elections which is the reason why investors are worried. Chandrababu Naidu was a trusted NDA ally and these developments do not augur well and PM Modi will have to take a stock of recent developments to keep his allies into confidence. However, fall in stock prices are a knee-jerk reaction and drastic falls can be used as a buying opportunity to pick quality stocks at mouth-watering valuations. Early elections would be in BJP’s favour as elections in the next six months would leave very little time for the opposition to unite and give NDA a fight!
(The views expressed by the author in the article are his/her own.)