The Congress party was able to restore market trust under PV Narasimha Rao's direction by enacting reforms, liberalising the economy, and drawing in foreign capital. These actions sparked an uptrend in the stock market and increased economic growth.
The Asian Financial Crisis and political unrest characterised the years 1996–1998. Market confidence declined due to instability and three different prime ministers, which had a negative impact on the Indian rupee and export-oriented sectors.
The market felt more stable following the National Democratic Alliance's (NDA) victory in the 1999 election under the leadership of Atal Bihari Vajpayee. Since the market had anticipated the results, the Sensex increased by almost 7% and maintained its upward trajectory for the following three months. Consequently, the GDP grew at a rate of about 6–7%.
Due to the results not aligning with market sentiment, the market experienced a 15% decline in two to three trading days following the 2004 election. The market had hoped for an NDA administration, but Congress had formed one. Following the initial disappointment, the market had a bull run that lasted until late 2007.
2009 saw the UPA retake control. The market had a 17% increase in a single day, but it remained erratic due to the numerous scams that plagued the UPA government's second term.
Investor mood in the market significantly improved in 2014 when the NDA regained control with a complete majority. The market's volatility decreased from 17.96% to 9.1%, indicating a more stable trading environment due to the decreased volatility. There was also a significant surge in the stock market, which saw record highs.
Following the election, the market saw a notable surge that resulted in record highs for a number of important stock indices. The expectations of sustained policy continuity and economic changes under the BJP-led administration were cited as the reason for this gathering.