Lok Sabha elections 2024: Indian stock market to be disappointed if BJP falls short of PM's 400-seat prediction— experts

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Also Read- Will Indian share market continue to correct before Lok Sabha election 2024 result? Experts list out 28 stocks to buy Sunil Damania, Chief Investment Officer of MojoPMS, echoed a similar view. “The prevailing expectation is that the BJP will achieve a majority; the primary debate concerns how this majority will compare to their previous performance," he observed. In February, Prime Minister Modi asserted in Parliament that the BJP would secure 370 seats and the NDA would obtain 400 seats, Damania noted.

This projection has set a benchmark for investors. Consequently, market disappointment is likely if the BJP falls short of PM Modi's forecast. Conversely, should the BJP exceed 370 seats, the market is expected to react positively, albeit briefly, as attention will quickly shift to budget expectations and potential adjustments to capital gains tax.

It is worth noting that following the 2019 election, the market declined for three months despite the BJP winning more seats than in 2014. Also Read- PNC Infratech share price skyrockets 17% to all time high being L1 bidder for two EPC road project worth ₹4994 Crore The investors need to take a call on the number of seats the ruling party will be able to secure. They should book profits if they are not confident, said Jasani.

They can also use derivative strategies and buy put option. The base case scenario is the return of the NDA and the BJP to power, which can trigger a rally in markets, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Those who are optimistic about political stability can buy ahead of election results, Vijayakumar added.