Market Trends Post-General Elections in India: A Five-Election Analysis (2004-2019)
The stock market reflects the nation’s confidence as a benchmark of its economic strength. India is a country that celebrates democracy with grandeur, general elections are more than a political event; they are a pivot around which market sentiments are shaped.
As the world’s largest democracy announces its verdict, the markets listen, react, and predict. This report delves into the post-election performance of various indices, offering a narrative of numbers that tells the story of a nation on the move.
Research Objectives
To analyze the performance of the Nifty index and its sectoral counterparts post-general elections. To identify patterns in market behaviour and investor sentiment following the electoral outcomes.
Methodology
Data collection for market returns post-elections. Analytical methods used to interpret the data.
Findings and Analysis:
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1) The Banking Beat (Nifty vs Bank Nifty)Â
Best Return:
In 2009, Bank Nifty led the charge with a triumphant 51.1%, while Nifty followed with a robust 37.7%.
Worst Return:
2019 saw a cautious stride, with Nifty at a mere 3.7% and Bank Nifty with Modest Returns.
Average Return:
On average, Bank Nifty outperformed Nifty, with a steady 17.7% compared to Bank Nifty’s amazing returns.
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2) The Consumer’s Choice (Nifty vs Nifty FMCG)
Best Return:
The year 2009 was a feast, with Nifty relishing a return of 37.7%, outshining Nifty FMCG healthy 33.8%.
Worst Return:
The 2019 aftermath was less indulgent, with both indices showing restraint.
Average Return:
Nifty FMCG, on average, provided a palatable performance, often in close contest with Nifty.
3) The Pharma Phenomenon (Nifty vs Nifty Pharma):
Best Return:
The 2009 elections were a tonic for Nifty Pharma, which soared to a dizzying 68.5%, eclipsing Nifty’s impressive 13.6%.
Worst Return:
The 2019 elections, however, were a sobering moment, with both indices reflecting a subdued market mood.
Average Return:
Nifty Pharma, with its average returns, demonstrated the sector’s potential for high yields.
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4) The Global Gateway (Nifty vs Nifty MNC)
5) The Tech Tide (Nifty vs Nifty IT)
Best Return:
The 2009 digital wave propelled Nifty IT to a staggering 71.4%, with Nifty also riding high at 37.7%.
Worst Return:
The subsequent years saw a normalization, with 2019 marking a low point for both indices.
Average Return:
Nifty IT’s average returns reflect the sector’s rapid ascent and its pivotal role in India’s economic narrative.
Conclusion:
The dance of the indices post-elections is a choreography of hope, anticipation, and the relentless march of progress. It’s not a map of the future, even if the past offers clues.
These observations offer investors a view of the market rhythm that allows them to make informed investment choices which are aligned with their own investments symphony.
This report provides a comprehensive overview of the market’s response to India’s electoral pulse, offering an informative and engaging narrative. It serves as a valuable resource for understanding the historical impact of general elections on market trends. Happy investing! 😊
This post is for educational purposes only and is not intended to serve as financial advice. Please consult your financial advisor before making any investment decisions or taking any action based on the information provided here.
Disclaimer:
- Investment In Securities Market Are Subject To Market Risks. Read All The Related Documents Carefully Before Investing.
- We Do Not Offer Any Guaranteed Return, Past Performance Is Not An Indicator Of Future Returns.
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Registration Granted By SEBI, Membership Of BASL And Certification From NISM In No Way Guarantee Performance Of The Intermediary Or Provide Any Assurance Of Returns To Investors.
