A Study on Movement of BSE Share Prices during Elections 2014

Stock markets are more sensitive to the changes that occur in the environment. Among the several factors causing volatility in the stock market index, investor psychology is one of the important factors which lead to change in the Sensex. Investor psychology before and after general elections has shown a significant change over the years. In India general elections are to be held in definite time intervals, but in reality, it happens more frequently. The parliamentary elections held in the year 2014 are one of the biggest and longest elections in the country. It was held in nine phases from 7th April 2014 to 12th May 2014. This paper attempts to study the impact of Loksabha polls 2014 on BSE Sensex and on different industry indices for a period of one month before and after elections.