INSUBCONTINENT EXCLUSIVE:
Investors might hope for a repeat of the 2004 election when it comes to the impact on equitiesIndian stocks have been roughed up along with
most markets in recent months, but there could soon be reason to cheer
National elections are due by 2019, and modern history shows that tends to be a good thing for investors.While Prime Minister Narendra Modi
faces an uphill battle to sustain his party's majority in the key lower house of parliament, the past six elections show positive returns
for Indian equities over the two years that straddle the vote -- regardless of whether power changed hands.The fiscal years prior to
elections showed positive gains for the benchmark SP BSE Sensex index in all but two of the past six ballots, and one of the loser years was
2008 -- when markets round the world were upended by the global financial crisis.Governments of course have plenty of incentive to boost
growth in the run-up to elections, potentially feeding through to corporate earnings as well
Optimism about a new administration's game plan could also help explain the history.Investors might hope for a repeat of the 2004 election
when it comes to the impact on equities
The Sensex saw a 113 percent advance over the two years through March 2005.(Except for the headline, this story has not been edited by
staff and is published from a syndicated feed.)
