How stock markets behaved during last 4 Lok Sabha elections

economictimes.indiatimes.com:

Election rally

Lok Sabha elections 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 stock market 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 elections and continued to do the same post elections.

2019

Markets did not rally pre or post results but were later impacted by Covid.


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