Election impact on stock market:

With India going through the final phase of polling and results expected in next 9 days (on 16th May 2014), just like political parties, lots of investors are eagerly waiting for the results. Though it is common sense that if the expected happens, markets could rally and viceversa. But analysis of past 5 elections reveal, though markets react to election results as they are announced, but markets revert and continue their trend soon after.

That brings us to the question, how many of us are going to participate on the election day. The fact is many of us are silent spectators. It is more like a moving car - it zips past you. Though we have the joy of remaining active on election day - cheering up, justifying, debating etc - they don't add up to your investment results.

Hence investors who genuinely want to profit out of investments should deploy their investments at every available opportunity. For the past 20 days Indian stock market has been in a narrow range, with frequent bout of profit booking. Use this opportunity to pick your  favourite stock and 'Profit out of Panic'.

Below mentioned slide was sent to me by TATA Mutual Fund, as part of a market presentation.