Amit Shah links stable govt to bull run in equity markets.
Union Home Minister Amit Shah, in an exclusive interview to NDTV, said stock markets should not be tied to electoral outcomes. However, he indicated equities could see upwards movement post the June 4 declaration of Lok Sabha poll results owing to a stable BJP-led administration.
With domestic indices correcting sharply recently on multiple catalysts, Shah dismissed rumors linking it with electioneering when questioned. He advised betting on markets ahead of results as Sensex may surge beyond the 100k threshold.
While refusing specific projections, Shah underlined historical trends of equities performing well under stable regimes. Asserting that the BJP will score over 400 seats to form a strong Modi government, he expressed confidence in markets rebounding on such political certainty.
The BSE benchmark traded below the 72,000 level after plunging over 700 points in morning deals on Monday. It had peaked at an all-time high of 75k+ earlier this month.
Political developments and foreign flows are known to impact investor risk appetites and, after that, index swings. Analysts have blamed the ongoing sell-off mainly on heavy FII sell-offs, geopolitical risks, and economic factors.
With global uncertainties compounding domestic uncertainties, equity performance hinges heavily on assured policy continuity, which analysts say a secure majority may provide.
