Case Name :      Parliamentary Election Impact on Indian Capital Markets

Authors :           Vipul Kumar Singh, Faisal Ahmed

Source :             Ivey Publishing

Case ID :            W14299

Discipline :        Finance

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

On the eve of the announcement of the results of India’s 2009 elections, a senior research analyst with a leading brokerage and investment house in India was trying to predict the possible outcomes of the election and to gauge their impact on the stock markets. The analyst wanted to recommend some optimal options strategies to his clients, as the outcome of events such as elections always led to high volatility and consequently high risks and returns. The formation of a majority government would likely give a significant boost to the markets, while the formation of a coalition government would likely have the opposite effect. The analyst was struggling to determine the kind of strategy (aggressive or defensive) he should suggest. He was working to help his clients make exponential profits in a short span of time without the fear of losing significant money.