Politico-eco factors may lead to volatile markets: Assocham

The political-economic narrative of 2018 and early part of 2019 will be centred around the impending polls in states like Madhya Pradesh and Rajasthan or the general Lok Sabha elections. 

“While there would be higher level of volatility in the financial markets as we further get into the election mode, the trend towards resolution of NPAs through the IBC will continue along with the focus of the government towards completion of the key infrastructure projects...,” Assocham’s Secretary General DS Rawat said in a note. 

Further, the note said investors should focus more on sectors associated with rural consumption and healthcare which are likely to receive “increased opportunities.” The roll out of Aayushman Bharat - the national health scheme - which has insurance as its core element, would gather traction.  

“It is a flagship programme of Prime Minister Narendra Modi and the roll out is expected to be big enough, providing a huge opportunities to the health insurance service providers, as also those in the healthcare sector,” the note said. 

Besides, the note pointed out that the government will also focus more on the farm sector.  

“With Monsoon expected to be normal and the government push likely in the next few months, the firms in the seeds, agri implements, including tractors, fertiliser, pesticides, dairy products and irrigation equipment would get a lot more business opportunities than in the previous few years,” the note said.