General elections can influence stock market. Here's what you should know and do

Mr Market is known for being dramatic. Sometimes, even unfounded news could spark volatility over a short period of time. Given its high-strung nature, general elections are definitely a big deal for the market; it can hold a great sway over them. With the 2024 general elections in full swing, many investors feel they are in the dark about how the market will react. And who can blame them for seeking a clear, identifiable pattern? Which is why we uncover the truth by seeking answers to the following three questions. Q1: Do general elections influence the market? Unfortunately, there is no black-and-white answer. In 2004, the market slumped both before and after the election results. Perhaps the Sonia Gandhi-led United Progressive Alliance's (UPA) victory confounded most poll pundits. Five years later, the market celebrated the continuity in governance with a one-day gain of 17.3 per cent. The euphoria was captured by the market in the subsequent m