Markets upbeat just six months before the 2019 Lok Sabha elections

Since 1996, bourses have registered strong six-month gains on five out of six occasions

Just six months before the general elections, investors usually tread cautiously. But if they look back at history, they have a reason to cheer.  

Since 1996, the markets have logged strong gains six months before on five out of six Lok Sabha election results. 

The benchmark Sensex has gained an average 17 per cent during the six-month period leading up to the counting of votes. The only time the markets fared badly was in 1998, when benchmark indices had declined eight per cent on account of the Asian financial crisis.

Last time (in 2014), the Sensex had rallied 17 per cent on optimism