Is the Indian Stock Market Going to Crash? What Is Really Driving Election Volatility?

Stock market crash just around the corner? Lok Sabha election results are just a few days away and it is quite clear that a lot of speculation and apprehension is seen in the Indian stocks. So, hold on tight because the roller coaster has not stopped yet.

Experts have differing opinions, but one thing is certain: what matters now is volatility. Are you really asking yourself whether there will be another quick fall of Nifty 50 or not? Don’t worry as I think by next week there may be 2-3% correction courtesy of political uncertainty and global financial downdrafts.

However, wait because something else is happening. The election isn’t the only reason why investors aren’t able to get enough sleep at night. The market will not recover due to high valuations, weak Q4 performance and geopolitical tensions. With all these factors in play it’s no surprise that the market hangs by a thread. In a recent interview, Amit Shah delivered his opinion about the stock market. Here’s what he said:

Finally, let’s talk about capital outflows from foreign shores. While FIIs pull out from India, investors within wonder if this might be a good time for them to jump ship too. Does China provide greener pastures? At such low valuations across the border, would you not take advantage and ride with a dragon?

Don’t rule out India just yet. Although the situation is bad, there are still a few reasons to hope for future good results. However, be wary because a narrow victory could have severe consequences that would result in serious market tremors and a steep correction.

In all the confusion, one thing is certain: The Indian stock market is going to be a wild ride. Strap yourself in tight but expect the unexpected.Whether you’re an astute investor or an amateur trader, this is when it’s essential that you stay on guard and prepare for impact.

Amidst these confusion , let’s explore some reactions of netizens –

Therefore, is the stock market crash heading so? It will only tell with time. However, one certainty remains true; uncertainty lies ahead as well as danger favouring only the bold winners in the business game plan.

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