How Long Will the Election Hangover Last in the Stock Market?

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Pre-Election Optimism Fades

The market reacted unfavourably post-election as BJP's predictions were missed, causing a 5.93% drop. Pre-election optimism faded due to coalition government constraints.

Market Under New Constraints

The market's performance under new constraints is uncertain, as the election rally overlooked high valuations and mediocre corporate performance.

Historical Market Performance

Historical data suggests markets tend to discount election results and align with global trends over the long term.

2004 Market Rebound

In 2004, global market rebound from crises led Indian markets to rise sharply until 2007, showing global influence.

2009 Recovery and 2014 Bull Run

In 2009, it took over three months for market recovery post-global financial crisis, while 2014 saw continued market climb in a bull run.

Summary and Future Outlook

Markets quickly discount election results, moving on to other developments. With elections concluded, it's business as usual for Indian markets.