Will Indian Share Market ($NSE) Face Continued Corrections Ahead of Lok Sabha Election Results?

<ul>
  <li>The Indian stock market benchmarks, the Sensex and the Nifty 50, continued to trade in a range on Wednesday, May 22, indicating caution as the Lok Sabha election 2024 outcome day draws closer.</li>
  <li>The domestic market has been experiencing significant volatility in May so far, reacting to reports and speculations about low voter turnout and the potential election outcome. Sensex and Nifty 50 are down by up to half a per cent this month.</li>
  <li>"Looking ahead to the Lok Sabha election outcome, it seems the market is set to continue its trajectory without major corrections, given that the markets are already factoring in the results," said Trivesh D., COO at Tradejini.</li>
</ul>
<p><strong>Stay updated on the Indian stock market's performance as the Lok Sabha election 2024 outcome approaches, with expert insights and stock recommendations.</strong></p>
<h2><strong>No Major Correction Till the Election Outcome</strong></h2>
<p>Experts anticipate that the Indian stock market will remain volatile until the final phase of the election on June 1. However, they do not expect the market to see a major correction in the run-up to the election outcome.</p>
<p>"Though we do not foresee a major correction in markets till the Lok Sabha elections, we do not rule out increased volatility. We sense that markets have priced in a win for the ruling government, with the actual number of seats expected to result in a sentimental reaction in the short term," said Manish Chowdhury, Head of Research, StoxBox.</p>
<p>After the election, the market mood will be influenced by central banks' monetary policy decisions, geopolitical developments, and the Union Budget in July.</p>
<h3><strong>Stocks to Buy</strong></h3>
<p>According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market is likely to respond to the election outcome before June 4th.</p>
<p>Vijayakumar said investors can consider buying stocks before the results. Priority can be given to largecaps, which are fairly valued compared to the broader market, where valuations are much higher. A possibility around the election results time is both FIIs and DIIs turning buyers lifting the largecaps and the indexes to higher levels, he said.</p>
<h3><strong>Conclusion</strong></h3>
<p>As the Lok Sabha election 2024 approaches its final phases, the Indian stock market is expected to remain volatile but not see major corrections. Investors are advised to focus on large-cap stocks and consider buying on dips, with a keen eye on central banks' policies and geopolitical developments post-election. The market's reaction to the election outcome will be crucial, and expert recommendations suggest a cautious yet opportunistic approach.</p>