Discover
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How do exit polls for the 2024 Lok Sabha elections influence the stock market?
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What are the projected seat wins for NDA according to the exit polls?
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Top stocks to invest in if NDA comes to power
The exit poll for Lok Sabha Elections 2024 will be announced today. Who will win this election? Will current PM Narendra Modi return for a third term? These are important questions but another important question that has become the talk of the town is, How is stock market reacting to the exit polls?
The Indian stock market entered the Lok Sabha election in 2024 expecting the incumbent government to remain in power, and the market has already factored in policy continuity. Various opinion polls projected seat wins in the range of 315-329 for NDA in the past week. While the counting is underway for the Lok Sabha elections 2024, the market witnessed a sharp decline in today’s trade due to early leads suggesting a mixed outcome for the election.
This downturn has led to the erasure of all gains made on Monday (03rd June), indicating uncertainty among investors regarding the election’s final results and its potential impact on market dynamics.
What will happen to the stock market after the Lok Sabha elections?
According to exit polls, Modi’s alliance will increase its 303 seats in the 543-member lower house and will likely get the two-thirds majority needed to initiate amendments to the constitution. If the projections are accurate, investors will likely focus on the expected policy continuity and a push for economic reforms.
Large-cap stocks with significant foreign ownership include HDFC Bank, Bajaj Finance, IT giant Infosys and tech services firm TCS. Longer-term, stocks related to the investment cycle such as capital goods, infrastructure and commodity firms could benefit said Vikaas Sachdeva, managing director of investment firm Sundaram Alternates.
How did the stock markets perform on the Lok Sabha elections result day?
The day of the election results always witness heightened volatility in the stock markets. This year, the Nifty 50 and Sensex witnessed a significant decline in today’s trading session. BSE Sensex lost over 2000 points on Tuesday and Nifty dipped below 22,000 as vote counting started.
On May 23, 2019, the Sensex soared to a record high of 40,000 points. Later the index declined to 298 points and settled at 38,811 points by day close.
Similarly, on May 16, 2014, the Sensex surged to an all-time high of 25,000 points making a historic milestone after the Lok Sabha Elections.
Also Read: Navigating The Future: Unveiling The Best Investment Plans For Millennials
Which are the Top stocks To invest in if NDA comes to power?
Below is a list of stocks you should invest in, if NDA comes to power.
How are the Lok Sabah election 2024 results affecting the Global economy?
Here’s how the elections are affecting the global economy:
| Economic Indicator | Region/Instrument | Movement |
| Bonds | Australia, New Zealand | Rallied |
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Stock Markets
|
South Korea, Japan | Declined |
| Australia | Flat | |
|
Currencies
|
US Dollar | Weakened |
| Malaysian Ringgit, South Korean Won | Strengthened | |
| Commodities | Oil | Tumbled |
| Cryptocurrencies | Bitcoin | Briefly topped $70,000 |
The Bottom Line
The 2024 Lok Sabha election exit polls indicate a possible continuation of the Modi-led NDA government, which has positively influenced investor sentiment. Historically, election results have led to heightened volatility in the Indian stock market. While the Sensex and Nifty experienced significant declines during vote counting this year, long-term investors are advised to stay invested, with sectors like infrastructure, defence, and capital goods expected to gain.
Frequently Asked Questions
What is Nifty and Sensex in Stock Market?
Sensex is the index for the Bombay Stock Exchange (BSE), and Nifty is the Index for the National Stock Exchange (NSE).
Which are the top 5 banks in Bank Nifty?
The top stocks in the index are HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., and State Bank of India.
What is the full form of Nifty?
The full form of NIFTY is the National Stock Exchange FIFTY. It is recognised as Nifty 50.
What is the full form of Sensex?
The full form of Sensex is the Stock Exchange Sensitive Index. It is the oldest stock exchange in India and is also termed the BSE (Bombay Stock Exchange).
Who is the owner of Nifty?
Nifty 50 is owned and managed by NSE Indices.
Which is the oldest stock exchange in India?
The correct answer is BSE. It is not only India’s oldest stock exchange but it is also the oldest stock exchange in Asia.
Investments in securities are subject to market risk. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason.
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