Lok Sabha elections: Nifty 50 rallied 4 out of 5 times after results, Bank Nifty outperformed
Also Read: Wipro shares trading at expensive valuation, offer little margin of safety, says Kotak Equities; downgrades to ‘Sell’ The Bank Nifty has closed in the green on all the four occasions (the index was not trading during the year 1999) with an average up-move of around 21%, data compiled by JM Financial showed. It had closed flat in 2004, while the highest return of approximately 46% was observed in 2014. Further, the Bank Nifty has outperformed the Nifty 50 on all the four occasions with an average outperformance of around 11%.
The analysis report considers a universe of the current F&O stocks with a minimum trading history since 2004 and a total of 119 such stocks were identified. Out of these 199 identified stocks, the 10 potential were identified as the potential outliers, with the sorting based on highest average returns. These stocks are - Adani Enterprise, Kotak Mahindra Bank, Siemens, Shree Cement, UPL, IndusInd Bank, Ashok Leyland, Federal Bank, Grasim Industries and Bajaj Finance.
On the contrary, nine stocks were identified as the potential outliers, with the sorting based on lowest average returns. These include Hindustan Unilever, Divi’s Laboratories, Oracle Financial Services Software, Britannia Industries, Tata Steel, Glenmark Pharmaceuticals, HCL Technologies, Tata Power and Steel Authority of India (SAIL). The historical analyses of the past five general elections reveal intriguing trends in market movements, with both Nifty 50 and Bank Nifty showcasing notable performances.
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