The nearly one-and-a-half-month-long election process, which concluded on June 1, saw a sharp increase in the market volatility index, India VIX. The VIX index surged from 13.4 at the start of polling on April 19 to 24.6 on May 31.
Despite these fluctuations, the large-cap benchmark BSE Sensex remained almost flat, closing at 73,961 on May 31, with a modest one percent gain. In contrast, ten select stocks from the BSE 500 index defied the election volatility, surging up to 77% during this period.
Top Performers in the BSE 500
Cochin Shipyard: This defense sector PSU was the top gainer during the elections, with shares jumping 77% to close at ₹1,948 on May 31, up from ₹1,098 on April 19.
Hindustan Zinc: Part of the Vedanta group, this metal and mining stock surged 72% to ₹687, up from ₹399.
Bharat Dynamics: Another defense sector PSU, Bharat Dynamics, gained 70% to reach ₹1,557 from ₹916 during the election period.
Jupiter Wagons: This railway sector stock rose 63% to ₹602 from ₹370 since April 19, 2024.
Finolex Cables: Wires and cables manufacturer Finolex Cables saw a 48% jump to ₹1,435 from ₹970.
Other significant gainers include Rail Vikas Nigam (48%), Mazagon Dock Shipbuilders (45%), Aegis Logistics (44%), Tejas Networks (43%), and Emami (41%).
Major Losers During Elections
Sun Pharma Advanced Research Company: Declined by 38%.
Aster DM Healthcare: Dropped by 30%.
Sonata Software: Fell by 23%.
Expectations for Stock Markets After Exit Polls:
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that exit poll results indicating a clear victory for the NDA with around 360 seats eliminate the election jitters that had been affecting markets in May. This development is expected to trigger a significant rally in the market on Monday.
“Large caps in financials, capital goods, automobiles, and telecom are likely to lead the rally. The bulls will be further emboldened by the better-than-expected 8.2% growth in GDP numbers released after market hours on Friday. Technically and fundamentally, the market is poised for a rally,” Vijayakumar said.