BSE Small Cap Index & Indian General Elections

February 13, 20197:39 am

I was trying to understand how the Small Cap index performs vis-a-vis Indian general election for the last 3 elections.

I find the below observation :

1. Markets form a bottom before the election starts.

2. Markets start moving up slowly prior to elections.

3. There is sudden and continuous upmove in the Small-cap index once the election results are out.

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Shekhar Yadav

I am a full time stock market investor. The blog is an extension of my research, thoughts & opinion. Please don't consider anything on this website to be an investment advise.

3 Comments

  • Dr Prashant Swami says:

    How will you rate current market valuations for small caps and mid caps. Are they undervalued or fairly valued or still over valued?

    • mm Shekhar says:

      They are highly undervalued. Still Waiting for them to pick momentum. But looks like it might happen post elections only.

  • Dr Prashant Swami says:

    I was looking for lump sum investment in small cap mutual fund. There fore I asked this question. Thank you very much for reply.

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