Investing in 'Ayodhya stocks'? Blind faith is not the answer

The prime minister will be inaugurating the newly constructed Ram Temple in Ayodhya, Uttar Pradesh today. It's quite the event. In fact, PVR INOX, has even collaborated with a news channel to broadcast the ceremony live in more than 150+ cinemas in more than 70 cities across India. The who’s who of business, from Adani, Ambani, Tata, to Bollywood celebrities and sports stars like Tendulkar and Kohli are expected to attend the inauguration.

I dont think we have ever seen anything like this before and neither has the stock market.

The state govt of Uttar Pradesh has set aside about $10 billion for a decade-long redevelopment plan of the town. Ever since, it's almost like a gold rush amongst investors for stocks in big or small companies associated with Ayodhya. From Taj Hotels and IRCTC to Praveg, a small luxury tent company–some in the stock market believe these companies are in all set to become some of the biggest beneficiaries of this Ayodhya gold rush.

But experts are warning investors against this kind of blind faith. According to them, buying into event-related market swings does not make for a sound long-term investment strategy.

Tune in.

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.