Sensex Crash Before Election Results: BJP In Trouble?

The stock market is going down before the Lok Sabha Election results. The BSE Sensex dropped from 75,390 to 74,030 in three straight days.

The India VIX index rose by 90% in a month, hitting 24.52 today.

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It shows the market’s nervousness before the election outcome. Exit polls are expected to come out soon, adding to the tension.

Market experts blame the uncertainty on the results. Investors are worried about the government formation after the polls.

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Market predictions often hit the bull’s eye, unlike investors. Everyone is betting big on the BJP winning over 330 seats in the upcoming elections.

Even though opinion polls and stock punters are sure about the BJP’s victory, Bank Nifty’s behavior suggests investors to be careful.

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Since 1991, election results have had a direct impact on economic policies, catching the interest of stock market players. Congress and the BJP have been the main players over the last two decades.

In 2004, despite high hopes for the NDA, Congress surprised everyone with a narrow win, leading to a significant market crash.

2009 saw Congress emerge victorious again, defying expectations of a hung parliament, sending the markets soaring.

2014 marked the rise of Narendra Modi and the BJP, with the markets rallying behind the promising leadership.

2019 witnessed the BJP’s landslide victory, fueled by the Balakot incident, driving market sentiments to new heights.

People are hopeful that the BJP will win big again. But, some investors are cautious because the Bank Nifty isn’t showing as much excitement.

Even though the market usually predicts election results well, some investors are worried about taking too many risks. They think it’s best to be careful until after the election results come out.