Stock market gave good returns before election results, poor returns after one year – ..

Ahmedabad: Looking at the last few Lok Sabha elections, the Indian stock market has given very good returns before the election results. The Indian stock markets have seen a positive trend in the pre-election period. Before the 2014 general elections, the Indian stock market benchmark index Sensex recorded strong returns in the three months after the election results were announced. However, the market has seen a correction after the election results.
If we look at the elections held during the tenure of Prime Minister Atal Bihari, the Sensex gave a tremendous return of 50.7% in the one year period before the Lok Sabha election results. However, one year after the elections, the Sensex fell by 13.1% and investors suffered losses.
Similarly, if we look at the Lok Sabha elections held during the time of Dr. Manmohan Singh, the election results were declared on 17 May 2009. In the same period a year ago, the Sensex had given a great return of 98.1%. Whereas, in the period of one year after the elections, the Sensex has given a return of 23.3%.
If we look at the tenure of the current Prime Minister Narendra Modi, the Sensex has given positive returns before and after the elections. The results of the Lok Sabha elections were declared on 16 May 2014. After this Narendra Modi became the Prime Minister. In the period of one year before this result, the Sensex gave a return of 16.6%. Whereas, in the period of one year after the result, its return was 20.6%.
However, during his second term, the Lok Sabha results were declared on 23 May 2019. In the same period a year ago, the Sensex’s return was just 5.2%. At the same time, the Sensex gave negative returns in a period of one year. During this period, the Sensex fell by 2.8%.
Overall, the market is witnessing a good uptrend before the elections. At the same time, correction is also being seen in the market after the elections. Amidst these developments, investors are keeping an eye on the performance of the market.