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How Election Results Affect Stock Prices?

This is a classical case study where sugar stocks were buzzing on the hope of Samajwadi party winning in the elections as they feels that they may relax some norms for land acquisition and favourable business policies etc.

Moreover it is also aptly said that buy on rumour and sell on news and moment the news was confirmed that Samajwadi party is going to win with majority, profit booking was seen in the stocks.

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