Nifty 50 usually gains 6 months pre and post general elections despite volatility: Motilal Oswal
Motilal Oswal Financial Services. The brokerage firm highlighted data spanning six months before and after the general election results of the last five elections (1999, 2004, 2009, 2014, and 2019) which indicates a consistent upward trend in the benchmark index Nifty50.
The index exhibited growth both preceding and following each election. "An analysis of the past five general elections suggests that the stock market (using point-to-point data) has exhibited higher returns in the run-up to elections, and while there are immediate fluctuations in post-election results, the equity market totally absorbs them over time," said Motilal Oswal.
Also Read: Can Nifty 50 hit 25,000 by General Elections 2024? Experts weigh in "Nifty 50 has grown between 7 per cent and 36 per cent in the six months before general elections since 1999, with an average growth of 21 per cent during the last five elections," Motilal Oswal said. Motilal Oswal underscored that in the quarter following the election results, markets fell twice (in 2004 and 2019); however, they moved into the growth territory within the subsequent quarter (six months after the election results), with an average growth of 14 per cent during the past five elections.
Also Read: Budget 2024 may not impact the Indian stock market significantly, says Anirudh Garg of INVAsset The trends are broadly similar for the mid-cap and small-cap indices as well, Motilal Oswal added. The FPI (foreign portfolio investor) equity inflows have also been positive during the past five pre- and post-election periods, said the brokerage firm.
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