How stock markets behaved during last 4 Lok Sabha elections
Stock markets exhibit positive returns during Lok Sabha elections despite short-term volatility. Past trends show fluctuation in prices with both upward and downward trajectories, offering insights for investors.
Election rally
always create a buzz around the D-Street. Over the long term, stock markets have generally exhibited positive returns despite short-term volatility related to elections. Volatility can work in both directions-upward and downward. While downward volatility refers to periods of declining prices and increased market uncertainty, upward volatility describes periods of rising prices and increased market fluctuations.While past performance does not indicate future results, historical market trends can provide insights.
Prabhudas Lilladher gives a glimpse of returns from in last 4 Lok Sabha elections:
2004
Markets corrected post results, but gave strong returns later.
8 out of 9 indices (benchmark as well as sectoral), were able to give positive returns to the investors.
2009
Strong returns in an abnormal post-Lehman crisis year.Investors reaped benefits as high as 92.7% during the 2009 Lok Sabha elections.
2014
Stock market gave positive returns in the run up to and continued to do the same post elections.2019
Markets did not rally pre or post results but were later impacted by Covid.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
