Page 59 - IMDR Journal 2025
P. 59

Research Article















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            Lok Sabha 2019                                    The results of 2024 were anticipated to get NDA Alliance a
                                                              pure sweep on the INDIA Alliance. The Exit Polls suggested
                                                              340+ seats for the NDA. The results were quite the opposite
                                                              and took everyone with surprise with NDA barely grabbing
                                                              293  seats  and  maintaining  the  government.  The  market
                                                              which rallied during exit polls took a downturn on surprising
                                                              results. The market was lagging due to the global trends and
                                                              India VIX remained at 18.47 during the period.













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                                                              Introduction to Market Volatility and Investor
                                                              Awareness
                                                              Market volatility refers to the rapid and significant price
                                                              fluctuations observed in financial markets, often triggered
                                                              by uncertain events such as economic crises, geopolitical
                                                              tensions, elections, or natural disasters. Unexpected events
            The  market  had  already  anticipated  the  return  of  NDA
                                                              often shake up the balance between demand and supply in
            Alliance  and  didn’t  react  to  that  as  much  the  markets
                                                              the market, leaving investors feeling unsure and anxious.
            remained sideways pre-election and post-election result it
            marginally  corrected  by  -5%.  The  VIX  remained  at  23   While ups and downs are a normal part of financial markets,
            during this period.                               things tend to get more intense when the future feels unclear.
                                                              This can affect stock prices, how much people are trading,
            Lok Sabha 2024                                    and the general mood of the market.
                                                              Such  uncertainty  brings  both  risk  and  opportunity.
                                                              Sometimes, prices drop and give investors a chance to buy at
                                                              lower rates. But for those who aren’t ready, it can lead to
                                                              panic, quick selling, and losses.
                                                              Tools  like  the  VIX  (Volatility  Index)  help  track  how
                                                              uncertain the market is and can guide investors on when to
                                                              be cautious. That’s why it’s important for investors to stay
                                                              informed. Knowing how to spread out investments, manage
                                                              risks, and stick to long-term goals can make it easier to deal
                                                              with market ups and downs.


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