Explained: Why Nifty, Sensex rose after every Lok Sabha Election since 1999

Another reason for markets rising, irrespective of who wins, is that the election is a very big economic event in India's consumption-driven economy

India’s key stock market indices, the Nifty and Sensex, showed a rise six months after all the four Lok Sabha elections between 1999 and 2014, compared to the previous six months, according to an IndiaSpend analysis.

We analysed Nifty and Sensex levels on three key dates--six months before the first day of polling (pre-election), the first day of polling (during the election) and six months after the first day of polling (post-election), over the last four Lok Sabha elections.

The Nifty and Sensex showed an average rise of 40.8% six months after each of these general elections, as compared to the previous