The Impact of Indian Elections on Share Market Trends: An Economic Analysis

Abstract

This study examines the relationship between Indian electoral cycles and share market trends to understand the economic implications of political events. Utilizing a comprehensive dataset spanning multiple election periods, we analyze market volatility, investor sentiment, and stock performance before, during, and after national elections. Our key findings indicate a significant impact of election outcomes on market trends, with increased volatility and investor caution observed during the pre-election phase. Post-election periods tend to show a return to stability and growth, influenced by the policies of the elected government. The implications of this study suggest that political stability and policy continuity play crucial roles in maintaining investor confidence and fostering a conducive environment for market growth.