Election creates Rs 26 lakh crore stock boom. All greed, no fear on D-Street?
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With impatient investors unwilling to wait till the release of Lok Sabha election results on June 4 or even the exit poll on June 1, Sensex has rallied over 3,500 points since voting began in a Rs 26 lakh crore rally. Considering April 19's low of 71,816.46, when voting for the first phase of Lok Sabha elections began, and Monday's closing of 75,390, Sensex is up over 3,570 points. In the meantime, the combined market capitalisation of all BSE-listed stocks has also gone up by Rs 26.36 lakh crore to Rs 419.95 lakh crore on Monday. Historical trends suggest that sharp movements may not stop here. In all the last 4 elections, the week preceding the results has been hectic. In 2004, when a Congress-led UPA government snatched power from NDA, Nifty had fallen 21.5% in the pre-result week. In 2009 elections, when Manmohan Singh retained the crown, Nifty had zoomed nearly 22% in 5 days before the D-Day. In 2014, Nifty had rallied 5% in ...