In keeping with what Modi had said about the stock market during the election campaign, Sensex and Nifty had reached all-time highs in the previous nine trading sessions.
The Sensex has increased by more than 5,000 points since the results of the Lok Sabha elections were announced on June 4, fulfilling Prime Minister Narendra Modi’s forecast of a stock market boom following the polls. Both the Sensex and Nifty have reached all-time highs in the previous nine trading sessions. As a consequence, the wealth of investors has increased to Rs 437.24 lakh crore, an increase of Rs 42.4 lakh crore.
During his Lok Sabha campaign ahead of the elections, Modi had claimed that when the election results are out, the stock market will soar to new heights. They will get exhausted a week after June 4 the time allocated to announcing the election results .
“For sure, on June 4, and when BJP is attaining new heights, so will the BSE and NSE hit their new high,” he had stated.
The Home minister of India Amit Shah also added that investors need to invest before June 4 as the stock market will rise after declaring the results.
The Controversy
Subsequent to the elections, Modi’s statements and at Amit Shah AMCN has become a political matter since Congress Rahul Gandhi claimed that June 4 crash in which investors lost Rs 31 lakh crore in notional value was due to manipulation in the markets. The Congress claimed that by the exit polls announced on May 16, the Sensex touched a new high 20334 on June 3 but the next day, it crashed.
But on the other hand, Morgan Stanley has estimated that the Sensex will reach a new high of 82,000 points in the coming one year. Regarding the re-election of the NDA, it has stated, “The main value addition to the market can be the policy continuity or predictability, which is likely to impact how the growth and equity returns will unravel over the next five years.” Further, it added that the government is likely to remain concerned with the stability of the matter, inflation-hawkishness.
Conclusion
The fulfillment of PM Modi’s prediction highlights market confidence and investor optimism, as evidenced by the record highs of Sensex and Nifty.
