MUMBAI: Election years have been fruitful for stock investors in the past. Out of seven general elections in the last three decades, markets have risen five times during the election year. For instance, in 2014, the Sensex gained 18 per cent in the six months prior to elections and 16 per cent in the six months after the event.
Similarly, in 2009, the index gained 30 per cent in the six month period before elections and 23 per cent six months after the elections. Analysts said investors tend to be optimistic before the event as the markets expect the best outcome in the elections. The markets fell only once in the six-month period before the elections in 1996. The uncertainty about the market’s performance has been higher in the one-month period before and after the elections.
