“Domestic markets today cheered the exit poll results for the Lok Sabha election, which predicted the NDA’s win for the third consecutive time. Nifty opened the gap up and touched a new high of 23,338 levels before closing the session near the day’s high at 23,263 levels with gains of 733 points (+3.3 per cent). Even broader market rallied, with Midcap100 and Smallcap100 up 3.2 per cent and 2.4 per cent,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
The market expert pointed out that India VIX cooled down 15 per cent to 20.94 levels, and all sectors participated in the runup. “PSU Banks, Infra, Realty, Energy and Oil & Gas rallied 5-8 per cent. The NDA 3.0 augurs well for the economy and capital markets as it provides stability and continuity in policy-making with a single-party majority government, which will be expected to continue pushing its economic growth agenda,” Khemka observed.
Considering the market’s performance on the eve of the election result announcement, investors will most probably continue their celebrations on June 4, as historical trends suggest.
Livemint collated the data on stock market performance trends on the day of the election results. We found that the outcome generally has minimal impact on long-term investors.
The S&P BSE Sensex Index has consistently risen in the six months following the election results in each of the last four cycles, with a median return of over 11 per cent.
Let’s take a look at market trends on result day in the last four elections:
May 13, 2004
The market indices, Sensex and Nifty, were up 0.77 per cent and 0.37 per cent, closing at 5,399.47 and 1,717.5, respectively.
Sensex Intraday High: 5,487.34 | Sensex Intraday Low: 5,131.03
Nifty Intraday High: 1,750.30 | Nifty Intraday Low: 1,625.10
May 16, 2009
Sensex was up 2.53 per cent and Nifty jumped 17.74 per cent to close at 12,173.42 and 4,323.15, respectively.
Sensex Intraday High: 14,284.21 | Sensex Intraday Low: 13,479.39
Nifty Intraday High: 4384.30 | Nifty Intraday Low: 3673.15
Also read: Lok Sabha Elections 2024: Railway stocks soar on exit polls; IRFC, RVNL among top gainers
May 16, 2014
Sensex and Nifty were marginally up, rising 0.90 per cent and 1.12 per cent, to close at 24,121.74 and 7,203, respectively.
Sensex Intraday High: 25,375.63 | Sensex Intraday Low: 23,873.16
Nifty Intraday High: 7,563.50 | Nifty Intraday Low: 7,130.65
May 23, 2019
Both the Sensex and Nifty remained flat, falling over 0.76 per cent and 0.69 per cent, respectively, closing at 38,811.39 and 11,657.05.
Sensex Intraday High: 40,124.96 | Sensex Intraday Low: 38,651.61
Nifty Intraday High: 12,041.15 | Nifty Intraday Low: 11,614.5
Data compiled by Anubhav Mukherjee.
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Published: 03 Jun 2024, 07:27 PM IST
