Markets will ‘shoot up’ on June 4, no need to link volatility with poll outcome, says Amit Shah

Union Home Minister Amit Shah on May 13 said the stock market has crashed several times before and there is no need to link the current market fall with the outcome of the Lok Sabha elections.

“The stock market has fallen before as well… there is no need to connect it with the ongoing elections,” the senior BJP leader said during an interview with NDTV Profit.

Shah acknowledged that the weakness in the market could be because of the speculation among the investors, but he was quick to dismiss those rumours and predicted a positive outcome for both the market and BJP’s chances in the general polls. “Even if the speculations led to the weakness in the markets, buy stocks before June 4 (date of election results)… they will shoot up.”

On May 13, the stock market was trading around 0.7 percent lower on negative cues from the global markets. The BSE Sensex was trading at 72,154.99, down 509.48 or 0.7 percent in early trading, while Nifty50 plunged 0.65 percent to 21,911.3. India VIX jumped nearly 14 percent to 21.05 in early trading, which is the highest since October 2022.

Also read: India VIX up 14% amid election jitters

However, in the past 6 months, Nifty 50 has gained 12 percent, while it has surged close to 20 percent in past 12 months.

Foreign portfolio investors (FPIs) have sold shares worth Rs 17,083 crore ($2.05 billion) in just seven sessions in May, the highest since January, while foreign investors have sold $1 billion in April after buying $4.2 billion in March, according to Reuters.

Also read: Share markets skyrocketing under Modi govt, says Amit Shah

The voter turnout has been low in the first three phases of the ongoing Lok Sabha elections compared to the 2019 polls. The first phase saw a turnout of 66.14 percent, while it was 66.71 percent in the second. In the third phase, the turnout stood at 65.68 percent, according to the Election Commission.

On May 13, the voting for the fourth phase began across 10 states and Union Territories for 96 Lok Sabha seats.

Earlier, in an interview with Network18, Shah had said the leadership of Prime Minister Narendra Modi has brought about a sea change in Indian economy and the share market is “skyrocketing”.

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Shah was speaking in an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi. “Even after selling by FIIs, Indian mutual funds have bolstered the market. Due to the PLI scheme and a strong ecosystem, India has become a favourite destination for manufacturing in the whole world. Our children are registering startups every day, our companies are registering patents daily, a lot of self-employment opportunities have been created. The balance sheets of all the banks have become very healthy. All the industrial growth parameters are at the topmost markings of 25 years,” he had said.

According to Shah, India has now become a pioneer in sectors which are going to drive the world economy for the next 25 years. The country has become a pioneer in all such sectors as green hydrogen manufacturing, semiconductors.

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