Parliamentary elections have a huge impact on markets in the short term. In 2004, the disappointment of the NDA not returning to power saw a 125 point intraday fall in the Nifty or an eight percent swing.
In 2009, on the day after counting, when the markets started trading, the Nifty jumped 20 percent. The 2014 election rally started all the way from September 2013 and got boosted in December, when the BJP won the state elections. In short, traders and investors need to know the impact of elections on the market.
In an interview to CNBC-TV18, Nilesh Shah, managing director and chief executive officer of Envision Capital; Saurabh Mukherjea, the founder of Marcellus Investment and Ashwini Agarwal, co-founder & partner at Ashmore Investment spoke about the impact of elections on market.