For the best experience, open
https://m.greaterkashmir.com
on your mobile browser.

Markets likely to see bull rally this week as election jitters go away

12:21 AM Jun 03, 2024 IST | IANS
markets likely to see bull rally this week as election jitters go away
Representational Photo
Advertisement

Mumbai, June 2: As exit polls predicted a thumping majority for the Bharatiya Janata Party (BJP) in the Lok Sabha elections, markets are likely to see a bull rally from Monday onwards in the poll result week.

Advertisement
   

According to market analysts, the exit polls have removed election jitters which have been weighing on markets since last month.

Advertisement

Market volatility was witnessed during the seven phases of voting that ended on Saturday.

Advertisement

When we look at the last five general elections, on the day of counting, Sensex gave negative returns thrice in 1999, 2004, and 2019 -- of 0.24 per cent, 11.10 per cent, and 0.76 per cent respectively.

Advertisement

Whereas, twice in 2009 and 2014, it had given positive returns of 17.70 per cent and 0.90 per cent, respectively.

Advertisement

One month after the results were declared, Sensex had given positive returns of 22.20 per cent in 2009, 4.59 per cent in 2014, and 0.99 per cent in 2019. In 1999 and 2004 alone, the market had given negative returns of 2.11 per cent and 10.50 per cent.

Advertisement

Six months after the results of the general elections, the market has given positive returns all five times.

Advertisement

Sensex had given returns of 7.56 per cent in 1999, 9.82 per cent in 2004, 35.05 per cent in 2009, 15.71 per cent in 2014 and 4.27 per cent in 2019.

Tanvi Kanchan, Head-UAE Business and Strategy, Anand Rathi Shares and Stock Brokers, said the election results are unlikely to have an immediate significant impact on India's equity market.

"If the incumbent government secures a strong mandate, it is likely to maintain the current bull run by ensuring political stability, which investors typically favour. Stability fosters a predictable policy environment, encouraging businesses to invest for the long term," said Kanchan.

For investors, market analysts suggest using the dips as an opportunity to get a further allocation in the equity at key markets.

Advertisement
×