New Delhi, June 5 : Investors are concerned about the stock markets due to the unexpected outcome of the Lok Sabha results which caused a steep fall in the Indian equity benchmarks on June 4.

According to market experts, there may be volatility in the coming days but the market will give positive returns in the long run. Both Sensex and Nifty rebounded on Wednesday.

Investors should focus on largecap and right-valued stocks. 'As soon as the new government is formed, stability will return to the market,' they said.

Amar Ambani, Executive Director of YES Securities, said, "Indian equity valuations were already quite rich, and election result day presented the market with the perfect reason to correct itself. Simply, based on where we stand on market multiples even now, I wouldn't rule out another 10 per cent correction. But the adjustment on account of election results is done. If the NDA is forming the next government with Prime Minister Narendra Modi, then markets will remain reasonably assured,' he noted.

Pradeep Gupta, Co-founder and Vice-chairman of Anand Rathi Group said that the immediate market reaction to the election results has been volatile but the overall long-term outlook remains positive, particularly if policy continuity is maintained.

'Investors are encouraged to stay informed, focus on fundamentals, and be prepared for short-term fluctuations,' he said.

Sectors like infrastructure, defence, and capital goods are expected to benefit from policy continuity and the government focuses on development projects.

Largecap stocks are preferred for their stability and resilience against economic fluctuations, the experts noted.

/IANS