BJP election victories revive stock markets
India Today
Sensex and Nifty 50 have rebounded since March 8, a day after exit polls predicted a BJP surge in the state elections.
On Friday, the stock markets headed for weekly gains, days after the ongoing Russia-Ukraine war, surging international oil prices, and inflation fears continued to impact shares. Both the Sensex and Nifty remained subdued till March 7.
However, the equity benchmarks have rebounded since March 8, a day after exit polls predicted a BJP surge in the state elections. Market trackers have said that a sense of political stability, with the ruling BJP's win in Uttar Pradesh and three other states, acted positively for investors' sentiments, crucial for emerging markets like India.
Election results impact the performance of the stock markets as investors' sentiments tend to depend on who is gaining access to the seat of power.
If the share markets perceive the policies of the ruling party as investor-friendly, a positive trend is seen. However, if D-Street thinks there will be fewer gains for investors, the stock markets go into a jittery mode.
Counting for the five state assembly polls in Uttar Pradesh, Uttarakhand, Punjab, Manipur and Goa were held on Thursday and results were declared by the Election Commission on the same day.
Stock market investors turned their focus on election results in the country's most populous state of Uttar Pradesh as the outcome offers clues to the national mood before the next Lok Sabha polls in 2024.
Experts said that election results, especially the outcome in Uttar Pradesh, dictated the stock markets.
