The 2024 Lok Sabha elections in India and its impact on the market

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Overview of the 2024 Lok Sabha elections

India’s 2024 Lok Sabha elections are an important event, which determines the composition of the 18th Lok Sabha. With nearly 968 million people eligible to vote, the poll marks a significant increase from previous years, indicating widening democratic participation in the country Elections are scheduled to be held in seven phases from 19 April to 1 June , 2024, and results are due by June 4, 2024. 2024 ( (India Today)

Key political players

Key political players include the current Bharatiya Janata Dal (BJP) led by Prime Minister Narendra Modi and the INDIA party, an opposition bloc comprised of major parties like the Indian National Congress (INC).The elections will be held in 543 constituencies, with 5.5 million electronic voting machines and millions of polling officials and security personnel.

Political context

Seeking a third consecutive term in office, the BJP is facing stiff competition from the Indian side. Recent polls show that the BJP-led National Democratic Alliance (NDA) is set to win a significant number of seats, but the Indian block is expected to make a notable gain, especially in the south-eastern states e.g. While the NDA has 27 seats.

Key battleground states include Uttar Pradesh, Maharashtra and Bihar, where the two alliances face fierce competition. The INDIA side is also expected to do well in states like Punjab and Telangana, which could affect the overall election results.

Market impact

The Lok Sabha elections have a major impact on Indian financial markets. Historically, volatility increases during election season due to uncertainty about political and policy direction in Indian markets 2024 elections are no different, and investors are closely watching election developments and possible outcomes.

Stock market volatility:

Markets have shown mixed reactions ahead of the election. The positive sentiment is largely driven by expectations of economic recovery and stability in the BJP, while uncertainty over a coalition government could cause market volatility.

Regional effect:

Particular regions are very sensitive to election results. For instance, industries, banking and energy sectors can benefit from continuous growth under BJP due to emphasis on development projects and economic reforms Conversely, structural reforms can affect these sectors on differently through power shifts (India Today) (Al Jazeera)

Foreign investors:

Foreign investors are especially wary of elections, as political stability and clear policy direction are critical to long-term investment decisions A landslide victory by any grand coalition could boost the economy investors have grown more confident, while a fragmented mandate could raise structural continuity and financial concerns changes (Al Jazeera) made.

Currency fluctuations:

Indian rupee fluctuates frequently during elections. Political uncertainty can drive down the currency’s value, while clear and stable election results can strengthen the currency.


The 2024 Lok Sabha elections are a pivotal event not only in India’s politics but also in its economic landscape. Investors and market participants are keeping a close eye on growth, with the possibility of substantial market upside based on the election results. As the world’s largest democracy navigates this challenging time, the interplay between politics and markets will be closely watched both domestically and internationally.

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