Business Today

Polls and the Sensex

Conventional wisdom says the stock markets hate political uncertainty and that investors become nervous before
general elections.

Rishi Joshi        Print Edition: Nov 4, 2007

Conventional wisdom says the stock markets hate political uncertainty and that investors become nervous before
general elections. But, as the charts below show, no such inference can be drawn by tracking the movement
of the BSE Sensex three months before and one month after the six general elections that were held since the
launch of the index in 1986.

But, as the charts below show, no such inference can be drawn by tracking the movement
of the BSE Sensex three months before and one month after the six general elections that were held since the
launch of the index in 1986.

 

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