The consequences of assembly elections today are probably going to affect the financial exchange in the close to term, say specialists. Over the years, studies have shown that the elections have a great impact on the financial markets especially during the counting day.
Assembly elections results days normally see high unpredictability. On the result day, the Nifty saw an intra-day move of 2 percent in 2007 and 3 percent in 2012, individually. In 2017, the intra-day move was more modest. Along these lines, a few sizable swings might be normal upon the arrival of the survey results today.
Nonetheless, specialists expect a touch of unpredictability however that would be transitory, as the market by and large zeros in more on national elections rather than states.
“Even though state election results have no direct impact on stock markets, a clear mandate to the BJP in Uttar Pradesh would be perceived as a strong indication that 2024 Lok Sabha elections would also be a clear mandate in terms of economic policy framework. However, a defeat in a big state like UP for the BJP might slightly dent sentiment and make the 2024 elections a more open & indecisive contest leading to volatility.” says AR Ramachandran, Co-founder & Trainer, Tips2Trades.
At the point when the political of the central government wins in the state elections as well, the market shows a positive reaction. Central government partakes in the certainty of individuals and it indicates the steadiness of the public authority. Market likes stability and indecisive outcomes are not really great for the market
“The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results. In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend.” said Vinod Nair, Head of Research at Geojit Financial Services.
Published By:Â JAINAM SHETH
Edited By : KHUSHI THAKUR
