Explained: Why Nifty, Sensex rose after every Lok Sabha Election since 1999


India’s key stock market indices, the Nifty and Sensex, showed a rise six months after all the four Lok Sabha elections between 1999 and 2014, compared to the previous six months, according to an IndiaSpend analysis.

We analysed Nifty and Sensex levels on three key dates–six months before the first day of polling (pre-election), the first day of polling (during the election) and six months after the first day of polling (post-election), over the last four Lok Sabha elections.


The Nifty and Sensex showed an average rise of 40.8% six months after each of these general elections, as compared to the previous six months.

The Nifty, short for the National Stock Exchange (NSE) Fifty, was launched on April 1, 1996, and represents the weighted average of 50 major Indian companies across 12 sectors that are listed on the NSE. The Sensex, short for the S&P Bombay Stock Exchange (BSE) Sensitive Index, which is an index of 30 major Indian companies listed on the BSE, was established in 1986.

Of the four Lok Sabha elections held after the establishment of the Nifty, two (2004 and 2009) saw the election of an Indian National Congress-led United Progressive Alliance (UPA) government. In 1999, the Bharatiya Janata Party (BJP)-led

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