Lok Sabha election results on June 4: Here's your stock market strategy handbook
exit polls have predicted a comfortable majority for the Modi government, shrugging off concerns in some pockets, at least for now.
Domestic markets witnessed high volatility throughout May, with benchmark Sensex shedding 0.8% and the broader Nifty losing over 0.5%.
Even though analysts believe the current market would take heart from the pollsters' predictions, all eyes will be on the big election results, scheduled on June 4.
Here's everything you need to know before the big Lok Sabha verdict
Volatile May
Even though the market has priced in the Modi government returning to power once the elections were announced, there were jitters among investors after concerns surfaced over the possibility of lower-than-expected seats for the BJP and low voter turnout.
The bleak mood was reflected in the volatility index, which shot up as much as 87% during the last month.
While foreign investors dumped equities worth over Rs 43,000 crore last month, DIIs defied the sellers to pump in around Rs 53,000 crore during the same period.
Both the benchmark indices Sensex and Nifty ended with cuts and the broader market saw mixed trends with smallcaps losing the most.
Market reaction to exit polls
Investors are likely to cheer exit poll numbers on Monday as trends suggest that the ruling BJP-led NDA alliance will return to power by securing over 350 seats.
Analysts said largecaps in financials, capital goods, automobiles, and telecom are likely to lead the short rally before the big numbers with a mix of public sector
