Election volatility, shifts happen

In election years, market volatility in India is influenced by expectations of stable governments and policy continuity. Decisive electoral verdicts often lead to a bullish market, indicating a 'business as usual' scenario. However, the impact of political stability on market volatility is weaker compared to macroeconomic factors and the global business cycle. Changes in government can lead to volatility, depending on the strength of the new government and its impact on policy certainty. India's growth, driven by government-led investment, combined with political stability, is expected to deliver strong equity returns, barring any major electoral upsets.
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