Market mood and elections

Uncertainty surrounding big events, such as elections, triggers volatility in the stock market. The Gujarat elections are no different with traders expecting the markets to surge if the Bharatiya Janata Party (BJP) wins and correct itself if it loses. Curiously, another formula went viral among the trading community on how the market could react to the election outcome. It went like this: The number of seats the BJP will win multiplied by 100 is where the benchmark Nifty 50 index will trade post results. So if the BJP wins 125 seats, the Nifty will hit 12,500 and if it wins only 92 seats, the blue chip index will correct to 9,200.