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

Mumbai: 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.

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

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

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.

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

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.

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

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.

Joseph Thomas, Head of Research, Emkay Wealth Management, said that the equity market remained volatile with a downward bias all through the week, trying to factor in the likely outcomes of the election results.

“While the economic fundamentals remain robust, with the secular uptrend remaining quite intact, the fact that the market has become relatively more expensive in the recent past could result in some profit booking,” he said.

According to market experts, the bulls will trigger a big rally in the market on Monday and large-caps in financials, capital goods, automobiles and telecom are likely to lead the rally.



India has potential to become world’s 2nd largest economy by 2031: RBI Dy Governor

Mumbai: Given the country’s innate strengths, it is possible to imagine India striking out into the next decade to become the second largest economy in the world not by 2048,...

Sensex closes at all-time high, tech stocks lead rally

Mumbai: Indian equity benchmarks closed in the green following a rally in IT stocks on Friday. At closing, the Sensex was 622 points or 0.78 per cent, at 80,519 and...

Banking sector witnessing a decade-high performance: RBI

New Delhi: As India aims to become the world's third largest economy soon, the banking sector is undergoing a decade-high performance in financial metrics, according to Swaminathan J, Deputy Governor...

Top-notch Saudi-Indian company launches its new website in Saudi Arabia

RIYADH: After months of hard work and dedication, Big City Solutions Company for Business Services is pleased to announce its new website ( with the primary goal of creating a...

RBI fines Punjab National Bank for breach of rules

Mumbai: The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of Rs 1.32 crore on Punjab National Bank for non-compliance with regulations on ‘Loans...

RBI inks pact to link UPI with 4 ASEAN countries for instant cross-border retail payments

Mumbai: Reserve Bank of India (RBI) on Monday announced that it has now joined Project Nexus with the four ASEAN countries to create a platform to facilitate instantaneous cross-border retail...

RBI Chief sees India on path to steady 8 pc GDP growth

Mumbai: RBI Governor Shaktikanta Das sees India moving ahead towards an 8 per cent GDP growth trajectory on a sustained basis, driven by structural economic reforms such as GST. "If...

Indian economy to continue on growth track despite coalition govt: Ridham Desai

New Delhi: Global brokerage firm Morgan Stanley is optimistic about Indian economic growth despite the coalition government. Ridham Desai, MD of Morgan Stanley India, asserted that under PM Narendra Modi's...

Household consumption expenditure jumps in India as incomes rise

New Delhi: Household consumption expenditure on goods and services in both the rural and urban areas of India, which reflects the standard of living and well-being of the population, has...

India’s forex reserves at historic high of $651.5 bn, CAD to dip: RBI

Mumbai: With a lower trade deficit, robust services export growth and strong remittances, the current account deficit (CAD) is expected to have moderated in the January - March quarter of...

RBI keeps repo rate unchanged at 6.5 pc to maintain balance between growth and inflation

Mumbai: The RBI left the key interest rates unchanged in its monetary policy review on Friday as it continues to maintain a balance between economic growth and keeping inflation in...

RBI raises GDP growth forecast for 2024-25 to 7.2 pc, sees CPI inflation at 4.5 pc

Mumbai: The RBI has raised India’s GDP growth forecast from 7 per cent to 7.2 per cent for the current financial year (2024-25), as it expects the economy to continue...

Read Previous

12 firms fined $7.5 million for price fixing over Samsung’s chip system bids

Read Next

Qatar, Egypt, US urge Hamas, Israel to reach agreement

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By :