What is the state of the stock market on the day of Lok Sabha election results? Know the ancient history

Voting for the last phase of the Lok Sabha elections ended on June 1. With this, the election battle that has been going on for almost one and a half months has come to an end. Now the eyes of all political parties, the entire country and the world are fixed on the decision of the people on June 4. On this day it will be known whether Narendra Modi is going to become the Prime Minister of the country for the third time or a new leader will get a chance to become the next PM.

Elections and stock market are related to each other

Dalal Street's eyes are also fixed on the results of the Lok Sabha elections. Elections and stock markets are closely linked. While the stock market has seen historic declines due to missing the expected results, the Sensex and Nifty have also seen a sharp rise on the desired results. Let's take a look at the results of the last few Lok Sabha elections and their impact on the stock market.

2004 Lok Sabha Elections

The results of this Lok Sabha election were contrary to market expectations. It was believed that the NDA government would once again be formed under the leadership of Atal Bihari Vajpayee. But, the results were opposite. Due to which the Nifty fell by 12.24 percent on the day of the result. However, it bounced 8.3 percent on the next day and gained nearly 16 percent over the next 5 days.

2009 Lok Sabha Elections

When the 2009 election results came in, the Nifty surged a whopping 17.74 percent. However, on the following day it was a marginal decline of 0.11 percent. So 5 days after the election results there was a 2 percent decrease.

2014 Lok Sabha Elections

BJP won this election and Narendra Modi became the Prime Minister of the country for the first time. The Nifty gained 1.12 percent on the day the election results came out. On the second day, a decrease of 0.84 percent was recorded. So in 5 days of the results, Nifty increased by 2.28 percent.

2019 Lok Sabha Elections

In the 2019 Lok Sabha elections, the government was again formed under the leadership of Narendra Modi. The Nifty fell by 0.69 percent on the day of the election results. On the second day there was an increase of 1.6 percent. So 5 days after the result, Nifty increased by 2.48 percent.