As Phase 5 of the Lok Sabha elections unfolds, Prime Minister Narendra Modi, in an interview with a TV channel, downplays the apprehensions on Dalal Street regarding the election outcome, expressing confidence in a significant surge in the Indian stock markets post-results.
Modi asserts that Indian stock markets will shatter previous records on June 4, attributing this optimism to the anticipated actions of stock market programmers during result week. He highlights the substantial growth of the market over the last decade, from 25,000 to 75,000, underscoring the importance of common people investing in stocks for bolstering the economy.
The Prime Minister underscores the government’s efforts in implementing economic reforms and pro-entrepreneurship policies to fortify the economy, evident in the rally of public-sector firms. He emphasizes the need for heightened risk appetite among citizens, aligning with the government’s reform agenda.
Amidst the turbulent bourses since the commencement of elections, Union Home Minister Amit Shah reassures stock investors, advising them to consider purchasing before June 4. Nomura India predicts a BJP win and policy continuity, envisioning sustained focus on infrastructure spending and manufacturing push in the next five years.
MUFG Bank echoes sentiments of positive market perception if BJP secures a majority, emphasizing the potential for further structural reforms. Mirae Asset anticipates focus on taxation, infrastructure, farm laws, and employment creation under a BJP-led government, while PhillipCapital anticipates a strong rally if the NDA achieves its electoral target.
The statements from political and financial leaders reflect a blend of optimism and caution, highlighting the significance of the election outcome on market dynamics and economic policies.
