General elections 2024: How much will the stock market swing after the results?

The Lok Sabha election results will be announced on June 4. How much can the market swing after it? What should be the strategy for investors? - Anonymous The market's response will largely depend on whether the results align with the expectations of the majority of investors. That said, the market is extremely volatile and unpredictable in the short term. This volatility, however, generally smoothes out over a longer period. For example, investing for just a day in Sensex resulted in negative returns 46 per cent of the time over the past decade. Conversely, when the investing period is extended to five years, instances of negative returns dropped to less than 0.5 per cent. A similar pattern emerges with election results. For instance, the markets reacted negatively just after the 2004 election results. But as time passed (six months to five years), the negative returns turned positive. Moral of the story General elections will happen every five years, accompanied by the usual predictions and speculations. But you should ignore such noise and trust in India's growth story. Here is the strategy you

This article was originally published on May 27, 2024.