Market instability possible until election results come out

New Delhi/Source: The kind of volatility seen in the stock market in the last two days may continue till May-June, 2024. In fact, there may remain instability in the market till the results of the general elections come. Stock market research agency Value Stock has said this in a study report released on Thursday 14 March.

According to the report, the fundamentals of the Indian economy are very strong, hence despite the current instability, if one wants to invest here for a long time, then it is quite safe. This report presents a picture of the stock market performance and returns to ordinary investors during the last four general election years.

Better returns achieved in the election year

This shows that in every election year common investors have got better returns as compared to other years. It also comes to light that after the general elections of 2009, the level of returns to investors has decreased. It remains to be seen what the situation will be in the current election year (2024).

Report prepared on Nifty 50 standard

This report has been prepared on the standard of Nifty 50. According to this, in the six months before the 2004 elections, the stock market had given a return of 10.5 percent. The return in the six months after the elections that year was 8.6 percent. After this, in the six months before the 2014 general elections, the return was 36.9 percent, while in the six months after the elections, the return was 36.1 percent.

General elections were also held in the year 2019, when the return for the first six months was 18.9 percent and the return for the subsequent six months was 2.2 percent. In this way, in the last four general election years, if we talk about the returns to investors in one year, it has been 19.9 percent, 86.3 percent, 38.4 percent and 13.2 percent respectively.