Home Minister Amit Shah on Monday sought to soothe investor nerves by saying markets will shoot up after the election results. He also advised investors to “start buying before June 4”, when election results will be announced.
In an interview to NDTV, Shah was, however, quick to add that the stock markets shouldn’t be linked with elections, but a stable government does help it perform better, implying that the Bharatiya Janata Party (BJP) is supremely confident of getting a comfortable majority.
Experts have attributed the latest corrections to heavy offloading by foreign portfolio investors and rising US bond yields. The behaviour of Dalal Street’s volatility indicator, India VIX, which is also known as the fear index, has left stock market traders confused, and some have linked it to the low turnout in the first few phases of the elections.
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Asked about rumours that the share market crashes indicated a poor performance by the BJP, Shah pointed out the markets have made bigger corrections several times prior to this.
Meanwhile, foreign minister S Jaishankar also expressed confidence that markets would stabilise after the poll results. Speaking at an NSE seminar, he said people are free to debate on the exact numbers but he is sure the market volatility will go down as more rounds of elections take place.
Jaishankar also said foreign investment will pick up, “but right now, investors are waiting for the June 4 outcome and then they will take a call.”
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