Amit Shah's "Buy Before June 4" Reply To Share Market Crash Question

The stock market shouldn't be linked with elections, but a stable government does pave the way for it to perform better, Union Home Minister Amit Shah told NDTV in an exclusive interview on Sunday. He also suggested that the market will shoot up after June 4 as a result of the BJP and its allies sweeping the Lok Sabha elections.

The seven-phase elections come to an end with the counting of votes on June 4.

The share markets have made huge corrections over the past few sessions due to various factors. Asked about rumours that the share market crashes indicated a poor performance by the BJP, Mr Shah pointed out that the markets have made bigger corrections 16 times prior to this.

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"Stock market crashes should not be linked with elections, but even if such a rumour has been spread, I suggest you that buy (shares) before June 4. It will shoot up," he said.

Mr Shah refused to comment if Sensex would not zoom past the one lakh-mark, but remarked that the stock market performs well whenever there's a stable government.

"That's why I am saying we are going to get 400-plus seats and a stable Modi government will be in power. Therefore, the share market will certainly go up," he said.

The BSE index, which represents the top 30 companies in the country, is below the 72,000 after it fell over 700 points during initial trading on Monday. It had crossed the 75,000-mark on May 3, the highest it had ever reached.

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Investor sentiments play a huge role in the share markets, due to which political churnings and elections are often linked to the equity performance. Experts have attributed the latest corrections to heavy offloading by the Foreign Institutional Investors, rising US bond yields and rate cuts, and hefty selloff.

Global conflicts also play a major role which impact investor sentiments and the share market.