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The Lok Sabha Elections 2024 trading strategy has been a hot topic as market participants gear up for the outcome on June 4, 2024. After six voting phases with one remaining, poll strategists are assessing the potential market movements. Analysts predict that the NDA will form the government, with the BJP likely to secure a full majority. The upcoming Lok Sabha Election Exit Polls on June 1, 2024, will play a crucial role in shaping market sentiments.
Jitendra Gohil, Chief Investment Strategist at Kotak Alternate Asset Managers, expressed confidence in the NDA’s victory. He highlighted the discrepancy between previous BJP seat counts and actual poll results. The market is poised to react to the exit polls on June 3, with anticipation building among investors.
The recent downturn in the Indian stock market, leading to losses totaling nearly ₹10 lakh crore, has added to the pre-election jitters. The Sensex and Nifty 50 have experienced consecutive sessions of decline, with the indices closing lower on May 30. Market participants are closely monitoring the election-related developments.
Analysts project the Nifty index to surpass the 23,000 mark on June 4, indicating a bullish sentiment. Various sectors, including large caps, PSU entities, and public sector banks, are expected to come under the spotlight post-election results. While uncertainties loom regarding the election outcome, experts suggest keeping an eye on heavyweight stocks like RIL, L&T, and Adani Group.
The analysis of market performance post-general elections suggests a positive trend in the ensuing months, with sectors like auto, consumer durables, and healthcare outperforming the benchmarks. Investors are advised to stay cautious and seek expert advice before making investment decisions, considering the potential volatility post-election results.
In the event of the BJP’s victory, continuity in policies related to infrastructure and manufacturing is expected, benefiting sectors like defence and capital goods. Conversely, failure to form a government may trigger a market correction, with the possibility of a coalition government scenario. Analysts anticipate heightened volatility on June 3 and 4, emphasizing the importance of monitoring exit polls and global market trends.
As the market gears up for the Lok Sabha election outcome, staying informed and adopting strategic investment approaches will be key for investors. The evolving market dynamics post-election results will present opportunities for both short-term and long-term investors.
