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Current Affairs News in India Stock Market News Updates

The Indian economy is constantly in the news for a variety of reasons. As the Economist magazine once put it; from the financial markets impact point of view, politics plays as important a role as economics. Take the US elections of 2016. Donald Trump had made a pre-election promise of cutting corporate taxes and investing $1 trillion in infrastructure. As a result there was a massive Trump rally in the markets once he was elected. Like it or not, politics and current affairs have a very important bearing on the economy and therefore the markets…

How markets have reacted to politics in the past…

Try to look at current affairs news in India and juxtapose it with stock market performance. You will find that there is an invariable linkage between the two. Let us look at 4 such instances in India…

  • Back in 2004 when the NDA government lost its majority the stock market indices hit the lower circuit. That was because the UPA was supposed to form a government with the backing of the Left parties. By then left leaders had already threatened to stall reforms and stop disinvestment of PSUs. Not surprisingly, stock markets started panicking.
  • In the 2009 general elections, the UPA not only retained power but also got a majority wherein they could form the government without support from the Left parties. It was hardly surprising that the Nifty was on upper circuit the day after the election results were announced.
  • In 2014, the markets had started rallying on hopes that the NDA would be able to form the government under the leadership of Mr. Modi. When the BJP got an absolute majority on its own it was seen as a boost for the reforms process and rally continued for much longer.
  • • Even state elections matter. Markets crashed sharply when the AAP formed the government in Delhi as it was seen as a setback to the ruling NDA. However, markets rallied when the BJP won Uttar Pradesh and Gujarat emphatically as it was seen as a signal for general elections. The moral of the story is that when it comes to markets; politics really matters.

Current Affairs and politics – LKP Securities coverage…

The LKP page on Current Affairs focuses on key political developments that could have a larger bearing on the market sentiment. Markets are all about sentiments and anything that appears to be conducive to reforms is seen as positive for the stock markets. The page does not take political sides and purely reports from the point of view of importance of the political news for markets. Traders and investors will have to consider politics before taking a market view. This page could be your one-stop shop.

Current Affairs & Politics

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