Indian Election vs Indian Stock Market

So the Lok Shabha Elections are going on and as an Indian citizen I want my country to continue developing and one day it should be counted in the developed nation. The economy is getting better as well as the most of the peoples life are changing for good. Yeah there are some bad governance happens every now and then but mostly the current government is quite good.

PC: Google.com

And the market too knows this, a stable government is much better than a coalition or hung government and everyone wants that a strong as well as stable government should rule us so that we can enjoy the development which we are having. Now the thing is on one had a government is there who wants to India to become developed by providing opportunities whereas the other side we have a opposition who wants to increase the reservation. The reservation should be done for the backward classes but only as per their economic condition and not as per your caste.

Now coming back to the market, market senses the sentiments of the people and act accordingly. Like the coting percentage in the last 3 phases have dip and and that's why the market is doen by over 2% and if the market finds that there will be no stable government then it can go down further.

In 2004 same thing happened the Nifty was down 9% just before the results whereas after the results the Nifty fall by over 20% because the government has changed and the market didn't anticipated that. Similarly in 2009, the market has gone up by around 40% mainly because India was not that affected by the global recession. And that's why a lot of money went into the stock market. When it comes to 2014, the market was stable because everyone knew that BJP will certainly win and in 2019, the market was volatile till the last day and when BJP won the election the market gone up.

And same this year too, the market was going good at the start of the first phase and when the voter turnout decreased there is a little fear in the market that there will be a setback or there will be a hung assembly and because of that market is down by over 2%. And if it became a reality, we could see more than 10% correction in the market.

As a stock market investor I hope that stable government wins and the development should happen as it is happening now.

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