Sensex Today Live: Shanker Sharma, Co-founder of PMS First Global, highlighted an interesting trend in the markets after the formation of a coalition government. In a post on X (formerly Twitter), Sharma pointed out that historically, the Sensex has shown significant gains after the formation of a coalition government.
According to Sharma’s analysis, the Sensex moved up by 1% one week after the formation of the government. In 2019, the market gained 2.5% after the government was formed, and in 2024, the Sensex surged by 6.5% following the coalition government’s establishment.
This trend indicates a positive correlation between political stability and market performance, with investors showing confidence and optimism in the market after the formation of a coalition government.
Sharma’s insights shed light on the impact of political developments on the financial markets, providing valuable information for investors and analysts to consider when making investment decisions. The analysis serves as a reminder of the interconnected nature of politics and economics, showcasing how market dynamics can be influenced by political events.