Whenever there is an election in India, it also affects the economy of India. The performance of the world economy is assessed on the basis of stock markets.
The Indian economy is decided only by the assessment of the stock market in India, due to which the inflation in the Indian markets is assessed.
The stock market is a place where the shares of listed public companies are traded. There are about 21 exchanges in India, out of which two major ones are National Stock Exchange and Bombay Stock Exchange. These stock exchanges are represented by two indices, Sensex and Nifty. The index of Bombay Stock Exchange is Sensex and the index of National Stock Exchange is Nifty. There are 5000 companies named on the Bombay Stock Exchange and 1600 on the National Stock Exchange.
In the absence of economic reforms in India, through the stock market indices, the country's financial stability, political stability, social causes, fiscal policies, country's security, GDP, business policies, stable government etc. are assessed and thus the stock markets of India. The performance of the economy plays an important role in making the economy stable and unstable. General elections play a crucially decisive role in the economy. If the government is unstable in the general election, then it will be surrounded by economic calamities. If there is a majority government, then the country will move towards progress. A stable government and index performance results from a general election.
Thus in conclusion one cannot say whether the effect of the stock market after or before elections in India will be negative or positive