Ankit Agarwal Alankit on the 2024 Lok Sabha Elections and Market Impact
The upcoming Lok Sabha elections in 2024 are set to reshape India's political and economic landscape. Investors are preparing for potential market changes as a result. Ankit Agarwal, Managing Director of Alankit and a respected industry expert, shares insights into what these elections could mean. Drawing on his experience, he discusses historical trends, how different sectors might be affected, and offers advice to investors.
"Investors are closely watching these elections because they could significantly impact market sentiment and volatility," says Ankit Agarwal Alankit.
Looking back, past Lok Sabha elections have had varied effects on Indian markets. For instance, after the 2014 elections, there was a strong market rally when the BJP gained a strong mandate. However, the unexpected coalition government formed after the 2004 elections caused market volatility and a drop in investor confidence.
"Election years have generally seen good returns in financial markets," Ankit Agarwal notes. For example, the Nifty50 index showed strong growth during election years: 10.68% in 2004, 75.76% in 2009, 31.39% in 2014, and 12.02% in 2019. These trends suggest that markets tend to favor stable political outcomes that promise economic continuity and reform.