Lok Sabha Election 2024 : Market may see sharp 20% decline if election results deviate from expectation- Experts: (currently new)

Introduction:-

Lok Sabha Election 2024: Benchmark Nifty -50 index scaled all-time high of 23007.20 on Friday, while Sensex is also trading near its all-time highs The gains are being fueled by the expectation the ruling Bhartiya Janata Party-led National Democratic Alliance (NDA) is likely to regain power. The strong dividend payout by the Reserve Bank of India also has helped improve sentiments as the fiscal deficit will get reduced. The same can improve confidence of foreign investors on India as well as provide strength to the Indian rupee. GDP growth will  be strong and government will have more money to invest on infrastructure and other development schemes.  (Current News)

Will the Indian share market continue to correct before the Parliamentary Election 2024 result?

Experts anticipate that the Indian stock market will remain volatile until the final phase of the election on June 1. However, they do not expect the market to see a major correction in the run-up to the election outcome.

Technical View: Strong bulls are likely to take Nifty towards 22,600 because the weekly options data indicates potential resistance at 22,500, with a breakthrough paving the way for levels between 22,700 and 22,800.

Impact of Parliament Elections on the Indian Economic Market ?

Impact of Elections on the Indian Economic Market Elections in India can influence the stock market in several ways besides it They can shape economic policies, regulatory frameworks, and government spending patterns. which can directly affect corporate profitability, investor confidence, and market dynamics.

Market performance in the last four general elections of Parliament ?

Lok Sabha Results	Prime Minister	Returns (%) Before Election Results	Returns (%) After Election Results	2 Years Returns (%)
		1 Year	1 Month	1 Month
6th Oct 1999	Shri Atal Bihari Vajpayee	50.7	3.3	-0.8
13th May 2004	Dr. Manmohan Singh	98.1	-7.5	-14.4
17th May 2009	Dr. Manmohan Singh	-24.9	26.8	6.8
16th May 2014	Shri Narendra Modi	16.6	8.0	7.1
23rd May 2019*	Shri Narendra Modi	5.2	-0.4	0.1
Average		29.1	6.0	-0.2

Conclusion :

The Lok Sabha polls 2024 and Indian stock market will undoubtedly be closely intertwined, as investors and traders closely monitor the political developments and their potential impact on various sectors and industries. While historical data suggests that elections often lead to increased volatility and uncertainty, a stable government and a clear economic agenda can provide a positive boost to the stock markets in the long run. However, investors should exercise caution and diversify their portfolios to mitigate risks associated with election-related market fluctuations.

FAQ:

Q1. How are stock markets affected by Parliament elections?

Answer1. Elections can influence market sentiment because The Indian stock market may see a short-term rally either leading into the Lok Sabha elections

Q2. Which sectors or industries are expected to boom ?

Answer2. India’s fast-moving consumer goods (FMCG) sector has been experiencing steady growth as you know it is one of the booming sectors in India.

Q3. Which technological sector will affect other sectors soon?

Answer3. Blockchain will greatly impact many fields, including healthcare, real estate, finance, and entertainment.

Q4. What is a RBI ?

Answer4. The Reserve Bank of India (RBI) is the central bank of India, which began operations on Apr. 1, 1935, under the Reserve Bank of India Act.

Q5 . What is a Lok Sabha ?

Answer5. The Constitution of India allows for a maximum of 550 members in the House, with 530 members representing the States and 20 representing the Union Territories.