Election Results 2024: Here's what to expect from Indian stock market and what should be your trading strategy

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Also read: Lok Sabha election results: Basant Maheshwari warns PSU stock holders of downtrend, says to 'analyse shares'Nifty 50 plummeted 8.5 percent to reach its intraday low of 21,281.45, opening at 23,179.50, on Tuesday. The Sensex began trading at 76,285.78, and it fell 8.2 percent to reach 70,234.43.Sensex concluded the day at 72,079.05, down 4,390 points, or 5.74 percent, while Nifty 50 finished the day at 21,884.50, down 1,379 points, or 5.93 percent.“Indian equities plunged after the vote counting trends suggested a lower seat count for the ruling NDA government.

We have seen a spurt in volatility, and India's VIX crossed the 31.5 level, which created more pressure on the market," said Ajay Menon, MD & CEO, Broking & Distribution, Motilal Oswal Financial Services (MOFSL).Amisha Vora, Chairperson & MD, Prabhudas Lilladher, says that the market is likely to shed ‘Modi Premium’, which will lead to correction in PSU and infrastructure stocks.“Once this turbulence stabilizes, attention will shift to the core macro factors affecting India. Investors should brace for volatility in the short term, but the underlying fundamentals of India's growth story remain strong," Vora said.Also read: Will PSU stocks face more sell-off pressure after a 25% drop?Menon believes the broader market may turn volatile as sentiments get hit, but a major trend of the Indian equity market is expected to revive after the cooldown of volatility over the next couple of days.“We expect the volatility around the outcome to reduce over the next few days and market focus to return on macro and fundamentals which continue to remain strong.