Look at how elections affect Sensex, Nifty
Stock markets spin around “sentiment,” and elections play a key role in shaping emotions. In elections, political parties with different political and economic agendas are at odds.
Stock markets spin around “sentiment,” and elections play a key role in shaping emotions. In elections, political parties with different political and economic agendas are at odds. There is always a slight fear of making a home in the minds of investors if the party that is elected can be positive or negative to some companies.
Even changes in views and economic strategies of the government itself or even ministers can change business prospects for different sectors of the economy. Moreover, there is fear in the stock markets that economic policies that are being implemented so far by the ruling party may change if the new government reaches the scene.
It leads to a rise in market volatility, and uncertainty reigns over the roost during this time period. The greater the number of voters who feel confused about who will be the obvious winner, the more stock markets will be affected by this volatility.
Elections in Karnataka
All these political voices have risen as Karnataka approaches the elections next week. Market experts believe that politics will prevail over the economy in Sinksix, as the Silicon Valley of India puts the tone for a series of state elections for the 2019 general elections. Some 2655 candidates will sit in the 224-seat parliament in Karnataka in multi-party elections, Which will be released on May 15. BJP, Congress and Janta D. Dakolar (JDS) The main parties clash in the state.
What should investors do?
Investors should not let political changes and market change their investment decisions. One must remain a long-term investor in equity markets, especially in times of uncertainty. The best option is to allow the portfolios to fluctuate normally and not to try to defer the stock market.
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