Shankar Sharma's general election prediction: If BJP/NDA comes with expected numbers, no major market move/slightly down

In a station connected X, Sharma wrote, "My satta prediction:

A. If BJP/NDA comes with expected numbers, nary large marketplace move/ somewhat down

B. If INDIA comes, immense fall, past mind-boggling rally, due to the fact that archetypal thing, they volition chopped LTCG to zero, arsenic they did successful earlier reign."

Read here: With polls underway, volition 'Sell successful May and Go Away' use this year?

Sharma's station comes arsenic Prime Minister Narendra Modi is vying for a consecutive 3rd term.

The 2024 Lok Sabha elections successful India began connected April 19 and volition instrumentality spot implicit a 44-day period, concluding connected June 1. This large governmental lawsuit occurs each 5 years and is important for astir Indians owed to its imaginable interaction connected assorted aspects of their lives, including their savings and investments. The result of the predetermination tin power economical policies and marketplace sentiments, which are pivotal for the country's aboriginal direction. Given the wide-ranging power of the elections, galore radical intimately travel the process and expect the results.

Read here: General Elections 2024: How macroeconomic factors similar equities, FPIs, ostentation this twelvemonth comparison with 2019 polls

In wide predetermination years, fiscal markets often acquisition affirmative trends, arsenic historically, they person provided bully returns during these periods. The past 4 wide elections, successful particular, person seen markets present double-digit returns. However, a imaginable downside is that these gains whitethorn already beryllium priced successful up of the existent predetermination cycle. This means that arsenic the predetermination approaches, the scope for further marketplace gains could beryllium limited, arsenic overmuch of the anticipated affirmative interaction mightiness already beryllium factored into existent marketplace prices. Investors should beryllium mindful of these dynamics erstwhile making concern decisions during an predetermination year.

Read here: General Elections 2024: An upmove seems much apt than a correction up of polls, says Shauryam Gupta of Rupeezy

Indian Markets person been connected a affirmative inclination this twelvemonth truthful far, with the benchmark Nifty extending gains for the 3rd consecutive period successful April. In 2024 YTD, the scale has risen astir 3 percent. Going ahead, astir experts spot a beardown semipermanent outlook for Indian equity markets but spot immoderate corrections successful the adjacent term.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 02 May 2024, 09:06 AM IST