Capital Trust
Capital Trust

Dec 21, 2014

08:06 PM EDT

  • New York close
  • London close
  • Tokyo close
  • Sydney close
Market Analysis

Home » Latest News » Volatility Expected For Indian Rupee and Equities

Volatility Expected For Indian Rupee and Equities

If history is anything to go by, equity investors in India are in for a wild ride in the days and months following the general elections which conclude on May 16.

Following the most recent election in 2009, when the Indian National Congress (INC)-led coalition won an overwhelming victory, the benchmark S&P BSE Sensex returned 20.5 percent in the five days after the election. By contrast, in 2004, when the Bharatiya Janata Party (BJP) lost the elections, the index declined 16 percent in the five subsequent days.

“Past experience shows that elections can be harbingers of significant post-election volatility,” Nomura strategists led by Prabhat Awasthi wrote in a report on Tuesday.

However, in the months after the elections, the market ultimately tends to reflect economic realities, notes Awasthi.


Get OANDA’s exclusive weekly Market Pulse FX

Email Address: Preferred Format:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post Volatility Expected For Indian Rupee and Equities appeared first on MarketPulse.

OANDAForexBlog/~4/Svrwgypnnp0″ height=”1″ width=”1″/>

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

Leave a Reply

Forex, Commodities, Indices

Follow Us

Daily Updates

Daily Updates

Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.