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Showing posts from May, 2024

Election and Correction in Stock Markets

" The influence on stock markets are so numerous and so complex that no person has ever been able to predict the trend of stock prices with consistent success. – Sir John Templeton" India is all set to participate in fourth phase of parliament elections. While all political alliances are claiming success, capital markets seem to be thinking otherwise. This is the general perception now-a-days. Elections will be over in next three weeks and in just 23 days from now on 4 th of June we will have absolute clarity as to who is forming the government. Till then let’s analyse the probable scenarios that can emerge from the elctions and their likely impact on the economy and the stock markets: A.     BJP wins with thumping majority – It will continue the ongoing economic policies with increased pace and vigour which should bode well for the economy and the markets. Additionally it can take some debatable decisions that may cause unrest in certain sections of the society, ...