Market Crash before Election Results - BJP in Trouble?
The stock market is declining ahead of the lok sabha election results. The BSE Sensex fell from 75,390 to 74,030 over three days. The india VIX index surged by 90% in a month, reaching 24.52 yesterday. It reflects the market's uneasiness ahead of the election results. Exit polls are scheduled to be released soon, adding to the anxiety. Market experts attribute the uncertainty on the findings. Investors are concerned about the government formation following the elections.
In contrast to investors, market projections frequently hit the bull's eye. Everyone is banking heavily on the bjp gaining more than 330 seats in the next elections. Even if opinion surveys and market analysts predict the BJP's win, bank Nifty's performance warns investors to be cautious.
Since 1991, election outcomes have had a direct influence on economic policy, piquing the interest of stock market participants. For the past two decades, the congress and the bjp have been the primary actors. In 2004, despite strong expectations for the NDA, congress stunned everyone with a narrow victory, resulting in a severe market fall. congress emerged triumphant again in 2009, confounding expectations of a hung parliament and sending markets surging. 2014 saw the emergence of narendra modi and the bjp, with markets rallying behind the promising leadership.
The bjp won a resounding win in 2019, propelled by the Balakot tragedy, which pushed market sentiment to unprecedented heights. people are hoping that the bjp will win large again. However, some investors are concerned since the bank Nifty is not displaying as much enthusiasm. Even though the market typically predicts election results accurately, some investors are concerned about taking too many risks. They believe it is important to be cautious until the election results are released.