A Study of SENSEX Volatility (Pre and Post Elections)

Abstract

The political parties and the general public to know who would be in control of the power at the Centre are keenly awaiting the greatest festival of Indian democracy, generally a once-in five- years affair, and this summer. The stock market is also looking up to the general elections, which would not only decide the mood and momentum of the stock market, but might also act as a sort of stimulus package for the economy, currently reeling under the pressure of a worldwide downturn Election is like big carnival in India with entire population from all walks of life gets swayed by it. There are colors and flood of money flowing. Everything comes to stand still. School, colleges and offices close on voting day. In India election process is held in multiple phases. 2009 election will be one-month extravaganza coming to an end by 16th may 2009, when one will be able to know about the victor and the vanquished. The outcome of the election will also determine the development trajectory of the India incorporate. This paper discusses some effects of election on the trend of stock market. How stock trends go up and down as per the elective government.