Stock market behaviour before and after the elections: Should it impact your investment decisions?

In 2023-24, India will see a number of state elections and a union election. Stock markets may show a knee-jerk reaction if the election results are not as expected. Let's look at the historic data of market reactions before and after the election results that can help in your stock market investment decisions.

India is heading towards election season in the next few months. The state assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, and Telangana can be considered as semi-final rounds. The ‘final’ will be held in May 2024, with the conclusion of the union elections.  In this article, we will understand whether and how much state and union election results impact the stock markets. We will also discuss whether your current stock market investment strategy should be based on the upcoming state and central elections in 2023-24 and where you should invest. Key highlights: The economic scenario in India is favourable, with good GST collections, GDP growth, etc., compared to the depressed global economic scenario In some instances, the stock...


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