Lok Sabha polls 2024 and Indian stock market: IT, Auto among top 5 picks for this season
equity market. Reading the tea leaves always gives some indications of how markets move during this tumultuous period. There are definite data points and trends that investors can look at to chart out their equity map during India’s moves in the elections.
“Irrespective of election outcome, markets have delivered double digit returns during the election year," says Feroze Azeez, Deputy CEO, Anand Rathi Wealth. Analysts note that in the six month period in the run-up to the elections markets have always seen an upside and this rally has continued in most cases, post favourable results. “Such rallies in anticipation of the election results are normal and we have seen such pre-election rallies in the last five elections," says Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. “In India, general elections act as one of the key triggers which significantly impacts the market volatility based on news inflows, sentiment changes and results of pre-poll surveys.
It is that lighthouse event which could possibly navigate the markets for next five years as it may alter the course of policy decision making, infrastructure project announcement, budgetary allocations, etc," wrote Shriram Way2Wealth in a Research Note on the 2024 General Election picks. But, let us come down to brass-tacks. After all, we in the equity markets must know how to benefit and why and how.
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