How the Stock Market Reacted on Previous Election Result Days

As exit polls predict a strong win for the BJP-led NDA in the 2024 Lok Sabha elections, the Indian stock markets, Sensex and Nifty 50, surged nearly 4% to new record highs on June 3. This rally was driven by expectations of political stability and continuous policy-making.

Siddhartha Khemka from Motilal Oswal Financial Services said, “Markets cheered the exit poll results predicting an NDA win. Nifty hit a new high of 23,338 before closing at 23,263, up 3.3%. The broader market also rallied, with Midcap100 and Smallcap100 up 3.2% and 2.4%. All sectors participated, especially PSU Banks, Infra, Realty, Energy, and Oil & Gas, which rallied 5-8%. NDA 3.0 promises stability and continuous policy-making, boosting economic growth.”


Historical trends suggest that the market tends to perform well following election results. The S&P BSE Sensex Index has consistently risen in the six months after election results in the last four cycles, with a median return of over 11%.

Market Trends on Previous Election Results Days:

May 13, 2004

  • Sensex: Up 0.77%, closed at 5,399.47
  • Nifty: Up 0.37%, closed at 1,717.5

May 16, 2009

  • Sensex: Up 2.53%, closed at 12,173.42
  • Nifty: Up 17.74%, closed at 4,323.15

May 16, 2014

  • Sensex: Up 0.90%, closed at 24,121.74
  • Nifty: Up 1.12%, closed at 7,203

May 23, 2019

  • Sensex: Down 0.76%, closed at 38,811.39
  • Nifty: Down 0.69%, closed at 11,657.05

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