The benchmark NSE Nifty 50 Index has climbed in the six months leading to the vote in each of the past five elections, posting an average 16% return during the period, data compiled by Bloomberg show. Gains in the three months after the polls have averaged more than 3%.
Analysts attribute this strong divergence of performance between two pockets of the market to a combination of solid corporate earnings and active participation of both local and institutional investors in the India growth story which goes well beyond bluechips.