"Volatility around elections is almost guaranteed. With the markets turning more optimistic about the election outcomes and the importance of elections to future growth and macro stability, investors may seek to adjust their portfolios for likely election outcomes," it added. Morgan Stanley's model portfolio has a combined 30 percent weightage for healthcare and IT stocks.

The scope for escape is little in mid-cap and small-cap shares that have risen faster than blue-chip stocks that typically comprise Sensex and Nifty indices, experts say.

The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. At 10 percent, 15 percent and 20 percent. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the NSE CNX Nifty, whichever is breached earlier.

"Markets have run up to great heights in the past two months. We expect the bullishness to continue. There are certain sectors which have participated in the rally and those which have not. For the bullishness to continue further, we expect a sector-wise rotation to happen. Hence, we are generating a sell call on certain over-heated stocks in the sectors, which have run up the most,"said Asit C Mehta of Investment Intermediates.

It has advised its clients to book profits in a minimum 20 percent and a maximum 40 percent from holdings in a list containing Apollo Tyres, Adani Enterprises, HPCL and Crompton Greaves.

Prabhudas Lilladher's R Sreesankar, who heads institutional equities, says the equity market behavior leaves very little margin of error as the market seems to have zeroed in on one person heading the new government.

"In the event of a decisive government failing to materialize, there is scope for huge disappointment and this could lead to the market correcting and the Nifty could come down to a lower range of 5700-6200 levels," he added in a report.

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