Sensex may breach 40,000-mark if BJP clinches over 300 seats in 2019 Lok Sabha elections

Sensex may breach 40,000-mark if BJP clinches over 300 seats in 2019 Lok Sabha elections

The benchmark Sensex may cross the psychological mark of 40,000 if Narendra Modi-led Bharatiya Janata Party (BJP) manages to clinch 300 seats out of the total count of 543 in the 2019 Lok Sabha elections.

Over the years, it has been seen that equity markets and election results share a heavy correlation. This time the benchmark Sensex may cross the psychological mark of 40,000 if Narendra Modi-led Bharatiya Janata Party (BJP) government manages to clinch 300 seats out of the total count of 543 in the 2019 Lok Sabha elections, according to experts.

With the successful completion of six out of seven phases of voting in the Indian general elections 2019, India is all set to vote in the last phase of 2019 Lok Sabha elections on May 19, 2019. All the market participants, policymakers, investment bankers and research houses have been waiting with the bated breath for the Lok Sabha election results scheduled to be announced on Thursday, May 23, 2019. 

Sensex at 40,000 

There seems a proportionate chance of Sensex breaching the 40,000 level for the first time upon the declaration of Lok Sabha election results on May 23. The probability seems higher if BJP manages on its own to gather 300 seats. “If BJP clinches 300 seats or more than the current regimen will continue and that will provide certainty for business community about the policies to continue. Impact on Sensex from this result will be positive and it may hit 40,000 due to euphoria, on the declaration of result or even on exit poll results,” Romesh Tiwari, Head of Research, CapitalAim told ETNowNews.com.

Markets after election results (2014 & 2019) 

During the previous two Lok Sabha elections, sharp up moves were observed in Indian stock markets with both the key equity indices Sensex and Nifty rallying to record highs. Sensex and Nifty surged to record highs after the announcement of 2014 Lok Sabha elections results day. BSE Sensex surpassed the 25,000-mark for the first time ever after rocketing 1,470 points to hit a lifetime high of 25,375.63 following the historic mandate in which Narendra Modi-led BJP registered a comfortable win crossing the majority mark.

After the declaration of 2009 Lok Sabha elections results, both BSE and NSE halted the market trading twice in a day after the Sensex and Nifty breached the upper circuits following the victory of United Progressive Alliance (UPA). The benchmark Sensex got locked at 14,272.62 up 2,099.21 points or 17.24 per cent and the 50-share barometer Nifty jumped 636.40 points or 17.33 per cent to 4,308.05.