Election Jitters and Indian Stock Market Performance-A conceptual study

The stock market is highly sensitive to political developments, particularly elections, which create uncertainty regarding future economic policies and governance. In emerging economies like India, elections significantly influence investor sentiment, market volatility, and sectoral performance. This paper examines the impact of election jitters on Indian stock market performance with special reference to the 2014, 2019, and 2024 general elections. The study highlights how political uncertainty, investor psychology, and expectations regarding policy continuity shape stock market trends. The paper also reviews previous literature on election-induced volatility and identifies research gaps in understanding the long-term effects of political events on financial markets. The findings suggest that stable and reform-oriented governments generally improve investor confidence and market performance, whereas uncertain mandates increase volatility and risk aversion. The study provides insights for investors, policymakers, and researchers regarding the relationship between political events and stock market behavior.

Election Jitters, Stock Market Volatility, Political Uncertainty, Investor Sentiment, Nifty 50, Sensex, Indian Elections.

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