Home Minister and senior BJP leader Amit Shah expressed confidence in his party's anticipated return to power for the third consecutive term, asserting that the Indian stock market would reach new heights on June 4, following Prime Minister Modi's presumed victory in the ongoing Lok Sabha elections.
In an interview with NDTV, Shah addressed concerns about recent market fluctuations, suggesting that attributing market movements solely to elections might not be prudent. Despite recent declines, Shah encouraged investors to buy before June 4, predicting a significant upturn in the market.
The Sensex has witnessed a decline of over 3,000 points or 4% in May, with the VIX surging to a 52-week high of 21, indicating heightened market volatility. Some analysts have associated this volatility with potential electoral outcomes favoring the NDA.
Shah attributed his optimism about the stock market's trajectory to the stability expected with Modi's return to power, citing historical trends of market performance under a steady government. He confidently asserted that the market would set new records on June 4.
Regarding the elections, Shah expressed optimism about the BJP's performance, expecting to secure over 190 seats in the phases conducted thus far. He anticipated further gains in the fourth phase, particularly in eastern India, including Bengal and Odisha, as well as in the North East region.
Monday saw the BSE Sensex drop by 656.52 points to 72,007, while the NSE Nifty fell below the 21,900 mark. Key laggards contributing to this decline included Tata Motors, JSW Steel, Tata Steel, SBI, and NTPC.
Additionally, the rupee opened on a relatively flat note at 83.51 against the US dollar, indicating a cautious market sentiment amidst ongoing electoral dynamics and global economic uncertainties.
