Markets are likely to find relief in a stable govt, says Sanjay Mookim

We believe a majority of investors, rightly or wrongly, are currently focused on the upcoming election and the potential volatility in stock prices around the event, says Mookim

With two key events — the interim Budget and the Reserve Bank of India’s monetary policy review — over, investors are now eyeing the outcome of the upcoming general election. Sanjay Mookim, India equity strategist, Bank of America Merrill Lynch, tells Puneet Wadhwa that the mid- and small-caps are likely to de-rate, especially as investors take a step back in the run-up to the election. Edited excerpts:

What are your interpretations of the interim Budget proposals and the outcome of the Reserve Bank of India’s (RBI’s) MPC meet?

The interim Budget has introduced the farmer income support scheme and reduced