An Indian Election and 60-Minute Bounce of Stocks

Dear Reader,

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Indian stock index BSE bounced high in 60 minutes due to an election. But how high and why? You will find now.

India is witnessing an important election result. At the time of writing, the results for Gujarat State are being aired on TV channels across India. There is no final winner yet but trend clearly points in one direction…

The prime minister’s party is set to return to power. This victory is a consecutive sixth in this business-dominated state. This victory will be significant for an important reason…

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This election is after a nationwide uniform tax reform and demonetization. These two major reforms took the country by surprise. These reforms were said to affect the business community the most. Hence a victory in a state dominated by business communities is a clear answer by the ruling party to the complaints.

By this victory, the invincible run of prime minister Modi continues.,,,

And yes, the stock market reacted very positively. It jumped a significant 300 points in under 60 minutes. (From 33446 to 33758). At the end of writing this post, the rise is still continuing. Happy days!

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