New Delhi
JM Financial Institutional Securities reported that market participants, both domestic and Foreign Institutional Investors (FIIs), have already factored in the return of the National Democratic Alliance (NDA) in the upcoming general elections. The report noted that the only uncertainty, if any, would be regarding the extent of the majority (number of seats) with which the NDA would win. The assessment of Nifty’s trend in the past five elections during the year before and in the election year indicates that Nifty is likely to move towards 20,500 by the end of FY24. The report suggests that Nifty is expected to return a 24% gain in FY25. Analyzing Nifty’s trend one year before general elections in the past five election years (FY96, FY04, FY09, FY14, FY19), the report found that markets moved in sync with the average of these years. Based on this trend, Nifty is projected to move towards 20,500 levels by the end of FY24. The report also considered the trend in the year of the election, averaging the last five election years (FY00, FY05, FY10, FY15, FY20). The average trend indicates an uptrend of 24% in Nifty. However, it’s important to note that the average was influenced by the 54% return recorded in FY15.
