Can Nifty 50 top 21,000 with a pre-election rally ahead of General Election 2024?

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general elections will be the biggest trigger for the market even though the outcome of state elections can cause short-term volatility in the market. "The next trigger for equity markets is the outcome of General Elections 2024. State elections can create short-term volatility, but the outcome of the General Elections 2024 is a key monitorable," said Dikshit Mittal, fund manager of LIC Mutual Fund.

Also Read: General Elections 2024 next big trigger for markets; can't say interest rates have peaked, says Dikshit Mittal of LIC MF A noteworthy observation is that historical data indicates a notable tendency for the Nifty 50 to experience substantial gains in the months leading up to the general elections. In the six months leading up to the past five General Elections, the Nifty 50 has consistently exhibited robust growth, showcasing healthy gains in performance during this crucial period. For example, Nifty 50 jumped 36 per cent in six months ahead of the General Elections in 1999.

Market participants hope that the Nifty 50 will repeat its historical trend even before the General Election 2024. (Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Experts expect Nifty 50 to clock healthy gains in the run-up to the General Elections even though there could be some volatility due to state elections, geopolitical developments and interest rate trajectory.

"Going by historical trends, Indian markets can rise before and after the elections. From the October 2023 close of 19,079, Nifty has already risen some 3.5 per cent and could rise some more to make a new high above 20,200 over the next few weeks. However, some volatility due to state elections,