Stock market volatility comes from several factors however election is one of the impactful causes of all.
Why Political Election Impact on Indian Stock Market?
Anyone invest in companies to get good returns but companies share will go up when they perform good and generate profits. Profit of a company depends on several factors and govt policies are one of them and highly impactful.
When a new govt comes in power its very likely that they would reform rules and what is impact of those actions are gauge by the stock markets and accordingly they reacts.
You might have observed that if same govt again comes in power market cheers and goes up however if political parties changes means other party comes in power market does not cheer because it knows that now things will be changed and it may impact their profits and business.
What should one do during election?
People must understand that they should be sitting neutral if looking for short however long term investor can take a risk according to their risk appetite and must be sink with market that it may react anywhere. Short term trader/investor should trade/invest keeping in market strict stop loss.