IMPACT OF UNION ELECTIONS ON THE STOCK VOLATILITY

Abstract

This paper examines the impact of union elections on volatility of stocks in India. The study is conducted on a sample of NIFTY 50. The data is considered for a total of 6 months 3 months pre elections and 3 months post election Analysis is done using Descriptive statistics and RSI tools and we have concluded that majority of the stocks under consideration are more volatile post elections, which show that investors are surprised from the election outcomes. Our findings have an important implication for optimal strategies of risk- adverse stock market investors and participants in the Equity market.