Three months into the general election results, Nifty closed in the green on four occasions

New Delhi, Feb 26 (IANS) A research conducted by JM Financial Institutional Securities has revealed that the Nifty closed in the green on four instances post India’s general elections, with an average up-move of 10.7%. The Bank Nifty also showed positive trends, outperforming the Nifty consistently.

The study found that the Nifty experienced a maximum positive move of 25% in 2009 and a minimum positive move of 8% in 2019, after closing down by 10% in 2004. On the other hand, the Bank Nifty had an average up-move of 21% and reached its highest return of 46% in 2014.

Additionally, the Bank Nifty has consistently outperformed the Nifty with an average outperformance of 11% in all four instances. As India gears up for the upcoming general election, experts are closely monitoring the market movements in anticipation of the results in mid-May.

The research also analyzed the movements of the Nifty and Bank Nifty on a 6-month basis into the election results, noting a strong upward trend. Stock-specific outperformers include Adani Enterprises, Kotak Mahindra Bank, and Shree Cement, while underperformers consist of companies like Hindustan Unilever and HCL Technologies.

With the broader indices facing heightened volatility this year, investors are looking to historical data from the last five general elections to predict potential movements in the market. The overall sentiment remains positive, with both the Nifty and Bank Nifty showing promising growth in the months leading up to the election.