equity markets: Poll Winds: A stable mandate’s a win-win for equity markets

The stock market may have some more steam left in it if historical pre-election trends are to go by. According to IIFL Alternative Research’s study of market performances before and after general elections since 1980, the Sensex has returned an average of 16% in the six months before the elections.

In the three months before the elections, the index has returned 8% on average. The brokerage has excluded years of fractured mandates — 1989 and 1998 — from its study. Banks and energy have been among the best and the most consistent performers in the run-up to the general elections.

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“Election years sow seeds of optimism backed by hopes of reforms and a stable mandate,” said IIFL’s Sriram Velayudhan.

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