India, May 15 -- Generally, the stock market is considered a leading indicator of future developments in the economy. Common understanding suggests that a rising stock market, more often than not, signals an expectation of an improved economy while a declining market hints at a weak economy. Over the years, many researchers, economists, academicians and investors have tried to predict the pattern of stock market movements to find anomalies in the returns that deviate from their fundamentals and provide arbitrage opportunities. In particular, the concept of 'election effect' is interesting as it examines stock returns around election date. Whether or not the effect is founded in rational or irrational choices made by market participants is...