(Last Updated: May 23, 2019)
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What is effect of Election on Stock Market in India? Real Impact



  • I was just reading about election news. A query came to my mind, does the election outcomes actually impact the stock markets? Or simply saying, do elections effect the stock market? Do equity market and election results have some co-relation? Can the sensex cross its earlier mark and set new records?

    General elections occur every five years. And, elections in India are a big event for the Indian economy. So, is the election year different from other years as far as share market is concerned? How does politics affect the stock market?

    @prateek049 @Tarun @Punkeirang @Harleen @Ishu @brokerdude @ishaantsingh013 @Wealthladder @GURUMOORTHI-G @UniQueme @ishu

    It would be interesting to hear the views of our forum members on such a hot and trending topic. So, what are your views on the impact of elections on the Indian stock market? As an investor or trader, what precautions one needs to take during the election season? Feel free to share.



  • @Anmol Yes, elections results do affect the stock markets. You might have already felt the buzz going around after the exit polls. Experts even believe the election result is going to have a positive impact on stock markets and Sensex is likely to cross the 40k mark.
    So, yes the results week is surely the most happening week for investors and traders in India. Let's see how it goes!



  • @Anmol Stock markets are highly volatile. In common man's language, stock markets are subject to rapid fluctuations or changes. Do you agree to it? Now, where does this volatility comes from? Of course, from the ongoing events, internal and external factors going on in the country.
    So, investors and experts tend to turn cautious during the election periods. Since, unpredictability is common during this period, so it somehow effects the stock market as well. There is likely to be some turbulence but markets tend to normalise after a certain period.
    However, elections are not the only factor that impact the stock market. There are numerous others that can't be ignored.



  • @Anmol The results are going to be out. Stock market is going to be at an all time high. All eyes glued on the election results and so are the stock market experts 🙂



  • During the previous Govt Tenure, the BSE sensex went from 24k->40k. If this Gove wins again, I believe that sensex will again rise further as market seems to have shown confidence in this Govt time and again.



  • @Anmol Hey, did u check stock market went so high. Sensex breached the 40k mark when election counting was going on. It opened high in morning on election result day. But, it closed a bit low at the end of the day. Anyways the election impact is not long term so market will stabilize soon.



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