The market has seen tremendous move over the results of the previous two lok sabha elections in 2014 and 2019. On both occasions, the market saw a record rally on the day of results. sensex saw a record rally on both occasions, it crossed 40,000 in 2019 and 25,000 in 2014, respectively
Market Reactions to Exit poll of Modi 3.0
Sensex and Nifty began trading at all-time highs following exit polls that showed the BJP winning handily. The Sensex and Nifty 50 both increased by almost 3 per cent, setting new highs of 76,738.89 and 23,338.70, respectively.
All of the 13 main sectoral indices were rising. The top gainers were Nifty PSU Bank, Nifty Energy, and Nifty Realty, all of which increased by 4-5 percent. The two indices that saw the least increase, Nifty Healthcare and Nifty Pharma, both saw increases of 1.2 per cent.
Market On Modi 2.0
The S&P BSE Sensex crossed the 40,000 barrier, and the Nifty 50 crossed the 12,000 barrier for the first time. These new highs were achieved by the indices as trends in the election results suggested that the BJP-led NDA government would be returning to power with a sizable majority.
After settling at 38,811, the S&P BSE Sensex decreased by 299 points, or 0.77 per cent. After reaching a record high of 40,125 levels in intraday trading, the index fell 1,314 points.
At 11,657 at the close, the Nifty 50 index as a whole decreased by 81 points, or 0.69 percent. During the day, the index crossed over 12,000 to reach 12,041 levels.
In the larger markets, the S&P BSE SmallCap index fell 16 points, or 0.11 percent, to close at 14,353, while the S&P BSE MidCap index finished the day at 14,650, down 21 points, or 0.15 percent.
Market Reactions to 2014 Elections
On May 16, 2014, investors celebrated the results of the Lok Sabha election, which indicated that Narendra Modi would win a landslide victory and become the next prime minister.
The BSE Sensex broke through the barrier of 25,000 on the counting date, May 16, 2014, rising 1,470 points intraday to reach a lifetime high of 25,375.63.
The move came as results indicated that the National Democratic Alliance (NDA), led by the BJP, was expected to form the next government at the federal level. The 50-share NSE Nifty reached an all-time intraday high of 7,563.50 after breaking through the 7,500 barrier.
Sensex hit an intraday low of 23,873.16, but later in the day, the bourses lost steam and entered negative territory as investors began to book profits. After a turbulent trading session, the Bombay Stock Exchange (BSE) sensex closed at a new high of 24,121.74, up 216.14 points, a move of 0.90 per cent.
