Analysts are divided over whether the markets would be able to repeat their past performances this time.
The post election phase for the stock market has been mostly cheerful in the past. A study of the Sensex performance for the previous four elections shows there is a higher chance of making money by staying invested. For instance, in 2014, the Sensex rallied 13 per cent in the year post the elections, 38 per cent in the year after the 2009 elections and 19 per cent in the year after 2004 polls. The year after the 2009 elections, which was won by the Congress-led UPA, proved to be the best period for the markets. Stocks had tumbled in 2008 and early 2009 because of the global financial crisis.
Analysts are divided over whether the markets would be able to repeat their past performances this time. While the economy is slowing and corporate earnings are yet to revive, share valuations are near record highs. Analysts said the combination of factors could put a lid on the gains in the coming months.
