Impact of Bihar elections on stock market.
Investors are looking cautious before the results of Bihar Assembly elections. The impact of election uncertainty and political environment is clearly visible on the stock market. In the early trading on Friday morning, market indices Sensex and Nifty were seen in red mark, on which investors are keeping an eye.
Sensex decline
As of 9:20 am, the Sensex was trading at 84,042.75, which was lower than the previous closing level of 84,478.67. That means the index saw a decline of about 435 points in early trading. Experts believe that due to uncertainty before Bihar elections, investors do not want to take much risk and this decline is its effect.
nifty status
At the same time, Nifty was also seen in red mark. By 9:20 am it reached the level of 25,766.30 as compared to the previous closing level of 25,879.15. Slight selling was seen in banking and financial sector companies, while a decline was also seen in the IT index.
Relationship between elections and market
It has been observed that during big elections like Bihar, the market often fluctuates. The biggest reason for this is that investors remain uncertain about future political decisions and policies, and political uncertainty has a direct impact on the stock market. Its effect is also visible on business sentiments and investment decisions.
expert opinion
Experts say that as soon as there is clarity in the election results, the market trend will be seen changing. A clear direction will be visible in the market only after the results are declared. But according to the current trend, investors are taking caution.
Tips for investors
Investors are being advised not to take their investment decisions in haste. After the election results, market fluctuations may become normal. In such a situation, avoid investing in risky shares and keep the portfolio balanced.