The Indian stock market is experiencing significant volatility due to the 2024 Lok Sabha election results. The announcement of Prime Minister Narendra Modi's projected victory has sparked a record surge in the Indian equity market, with both Sensex and Nifty 50 indices rising over 3%, marking the largest single-day rally since January 2021 

Investors and market experts are closely monitoring the potential impact of the election results on the stock market. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, expressed confidence in the market reaching new highs due to the ruling party’s projected majority, positive macro trends, and robust corporate earnings. He recommended focusing on manufacturing, capex, infrastructure, and financials for long-term investment 

However, as early indications suggested a closer election result than anticipated, the stock market experienced a significant downturn, leading to a substantial loss for investors. The Sensex and the Nifty 50 both dropped over 8% each, with the BSE Midcap index plunging 10% and the BSE Smallcap index recording a loss of over 8% during intraday trading 

With the Indian elections often causing short-term stock market volatility due to uncertainty and speculation about political changes, maintaining a diversified portfolio and focusing on sectors likely to benefit from policy changes is advised 2.

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