18-Mar-2024
2 mins read
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Lok Sabha Election is one of the most important stock market events which impact the long term direction. Over the years, the majority of time markets have performed well and closed on a positive note.
The rise in volatility due to uncertainty may raise concern for the short to mid term traders. Also wild swings in any of the directions are possible. So, it’s important to analyze the past data of broader market indices Sensex, how investors have reacted during Lok Sabha polls to understand the future patterns.
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Lok Sabha Election: How Sensex Moved in Past
| Lok Sabha Election Year | Sensex Close Before Election Start day (Rs) | Sensex Close on Election End Day (Rs) | Percentage Change in Sensex During LS Polls |
| 1999 | 4,709.93 | 4,702.31 | -0.20% |
| 2004 | 5,800.54 | 5,555.84 | -4.20% |
| 2009 | 11,284.73 | 12,019.65 | 6.50% |
| 2014 | 22,359.50 | 23,551 | 5.30% |
| 2019 | 38,585.35 | 37,930 | -1.70% |
| Lok Sabha Election Year | Sensex close before counting day (Rs) | Sensex Close on Election Counting day (Rs ) | % Change in Sensex on counting day |
| 1999 | 4,708.92 | 4,697.70 | -0.20% |
| 2004 | 5,358.35 | 5,399.47 | -0.80% |
| 2009 | 12,173.42 | 14,284.21 | 17.30% |
| 2014 | 23,905.60 | 24,121.74 | 1% |
| 2019 | 39,110.21 | 38,811.39 | -0.80% |
Lok Sabha Election: The above table displayed the Sensex figures before the Election start day and close. Also, the percentage change during Lok Sabha Election polls and counting day is also stated.
In the 2009 and 2014 elections, Sensex remained positive during LS polls and showed a massive rise on a counting day. However, in the last year, the Sensex closing on the counting day has been mildly negative.
Currently, Sensex and Nifty indices are near to its all time high which shows that the overall trend of the market is bullish. However, in the last two weeks, the market witnessed minor corrections in mid and small cap sectors which also needs to be kept in mind before investing.
BSE Market Capitalization Crossed 4 Trillion
The market capitalization of BSE had recently crossed nearly $4 Trillion which is 4 times higher than the $1.1 Trillion in the 2014 Election. The Sensex points tripled in the last four years from 24,000 to 73,000.
Mutual Fund’s AUM has increased more than 500% from Rs 8.25 lakh crore to Rs 50 lakh crore.
Funds raised in the private placement had also witnessed a sharp surge and increased 120% in the last 9 years. From 3.99 crore in 2014 to Rs 8.82 crore in 2023.
The Indian Capital market has added around 15.69 million investors in 2023 and retail participation is also on rise. It shows that Indian youth and young investors are positive for the future outlook for overall country’s growth.
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