NEW DELHI: In the whirlwind of recent political events, the Indian stock market haslo mirrored every twist and turn, experiencing wild fluctuations that have both worried and excited investors. With the budget session on the horizon, there’s a palpable sense that the market is poised for a crucial correction, an adjustment necessary to sustain its long-term health.
Polls and Projections: A Tale of Two Extremes
As election fervor peaked, the Indian stock market turned into a veritable rollercoaster. The Nifty 50’s jittery movements, swinging approximately 2% on exit poll announcements, captured the market’s hypersensitivity to political developments. This volatility escalated until the election results confirmed a stable government, sparking a 4% surge in the index in a single day, a vivid illustration of relief and renewed confidence among investors.
Diving Deeper: Infrastructure stocks like Larsen & Toubro exemplified this trend, with an impressive 6% jump as projections turned to reality. The market’s euphoria was underpinned by expectations of continued economic reforms and infrastructural boosts.
Breaking Records: The Bulls Take Over
Post-elections, the narrative quickly shifted from uncertainty to unprecedented growth. Driven by a flood of foreign institutional investments and robust corporate earnings, major indices such as the Sensex and Nifty shattered previous records. Within a month following the elections, the Sensex soared by an astonishing 10%, while the BSE Midcap index notched up a 15% increase, signaling broad-based investor optimism.
According to the market expert Suhas Fruitwala, “This is stock market of new Bharat. It’s strong, it’s unstoppable. There can’t be a better time and market than now and India. Volatility might come and go but the overall trend is up and intact.”
The Inevitable Pullback: Market Correction on the Cards
However, history and experience suggest that what goes up must come down. Market strategists and seasoned investors alike are bracing for a necessary correction, likely to be price-wise, where overvalued stocks readjust to more sustainable levels. Such a pullback is