VOTES AND VALUATIONS: THE IMPACT OF LOK SABHA ELECTIONS ON STOCK MARKET

Abstract

This paper investigates the impact of the 2024 Indian Lok Sabha elections on the stock market, a relationship of significant interest to economists, investors, and policymakers. Given the pivotal role of the Lok Sabha in shaping India's economic policies and legislative landscape, the outcomes of these elections are expected to have substantial implications for market dynamics. Historical data analysis reveals that past elections have consistently led to increased market volatility and activity, reflecting investor sentiment towards political stability and economic policy continuity. This study employs a combination of quantitative and qualitative approaches, including historical data analysis, event studies, and predictive modeling, to forecast potential market reactions. Key factors such as political stability, proposed economic reforms, global economic environment, and investor sentiment are examined to understand their influence on market behavior. The 2024 elections are especially significant as they occur during a period of post-pandemic economic recovery, technological advancements, and evolving geopolitical relations. By analyzing these factors, the paper aims to provide insights into how different election outcomes might affect various sectors, investment strategies, and overall market performance. The findings are intended to aid investors in navigating the election period, making informed decisions, and understanding the broader implications of political events on economic stability and growth. This comprehensive analysis contributes to the existing literature on political economy and market behavior, offering valuable perspectives for stakeholders involved in the Indian financial markets.