Now the stock market will remain in the 2024 election whirlpool

Along with the Lok Sabha elections in India, the schedules for the assembly elections of five states have been announced. Looking at the past history, it can be said that during the elections, the Indian stock markets will remain in the electoral whirlpool and there is little hope of further bullish or recession in the stock markets and stability is expected. If the Indian stock market indices were studied from the announcement of notification of the last five Lok Sabha elections to the day of final voting and the day of declaration of results, there was a slight decline in the stock market in three of the last five elections and an improvement in two which is an indication that the stock market does not believe in much ups and downs in the election environment, but the results are being pre-estimated even before the 2024 Lok Sabha elections, so this possibility cannot be ruled out. There may be some difference in comparison to the previous record, but it is also certain that the new government decides the country’s policies at a new level and if the results are contrary to expectations, then the times to come will be different for the stock market. It may also prove costly. By the way, if we talk about the last week, the continuous bullish trend in the stock markets has ended and the equations created at the political level have contributed more to this bullishness.

There has been a downward trend in the Indian stock markets last week. According to the data, last week the BSE index fell by 1475.96 points and closed at 72646.43, while the NSE Nifty index also fell by 470.20 points and closed at 22023.35. The special thing is that the trend of midcap and smallcap indices was much higher than the decline of the basic index, which is pointing towards the weakness of this sector. Talking about the bullion market, this week the prices of gold fell by Rs 400 per 10 grams, while the prices of silver increased by Rs 1400 per kg and the price of gold was Rs 67,000 per ten grams and silver was Rs 76,100 per kg. Traders say that bullion business is expected to improve this week.

Regarding the market trend this week, traders say that the market looks strong in the long term. The recent fall in the market will help drive out faint-hearted investors from the market. They say that in the month of March, investors sell for long term capital gains, due to which there is pressure every year in the month of March. They say that the stock market has already absorbed the Lok Sabha election results, hence investors should wait for some time before making new investments. In the opinion of traders, companies with strong fundamentals are safer from the point of view of long-term investment, but in view of the confusion, investors should invest in these also in pieces, so that new investment can be increased in case of further decline. Crystal Integrated Services Ltd. will be in the main board this week. And five IPOs on the SME platform will be available for investors to apply. Before investing in a new IPO, investors should decide to invest only after studying the financial condition of the company and the premium being demanded. On the other hand, among the new IPO applications coming to SEBI this week, two companies Transrail Lighting, Manba Finance Ltd. has submitted its Draft Herring Prospectus-DRHP.

(This is the personal opinion of the author.)

Vimal Kothari Associate Editor, First India News & Senior Journalist