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Empirical Study on Effects of the Lok Sabha Election on Stock Market Performance (BSE SENSEX)

Author Affiliations

  • 1The University of Michigan, Dearborn MBA in VIT Business School, Chennai, INDIA
  • 2 VIT Business School, Chennai, INDIA

Res. J. Management Sci., Volume 4, Issue (2), Pages 1-9, February,6 (2015)

Abstract

This study is mainly focused on effects of 16thLok Sabha election on stock market performance in India. Various factors have been analysed which affect the stock market performance during election period. The study has found that there is significant relationship between Lok Sabha election and Stock market performance. People’s sentimental analysis about the companies and also Portfolio optimization for the companies which are listed in BSE SENSEX index have been done during election time. This study examines that Lok Sabha election affects the stock market performance and also company’s endogenous and exogenous factors are affected. In addition to, Election result is also one of the factors of an investment decision which has proved in this study by the way of conducting an Event study.

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