Amit Shah's answer to the “Buy before June 4” share market crash question

The seven-phase polls will conclude on June 4 with counting of votes. (file)

New Delhi:

Union Home Minister Amit Shah told NDTV in an exclusive interview on Sunday that the stock market should not be linked to elections, but a stable government helps it perform better. He also suggested that the success of the BJP and its allies in the Lok Sabha elections would lead to a market rally after June 4.

The seven-phase polls will conclude on June 4 with counting of votes.

Due to various factors, the share markets have undergone drastic corrections in the last few sessions. Asked about rumors that stock market crashes signaled the BJP's poor performance, Mr Shah pointed out that the markets had made major corrections several times before.

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He said that the stock market crash should not be linked to the elections, but even if such a rumor is spread, I suggest you buy (shares) before June 4.

Mr. Shah declined to comment on whether the Sensex would go beyond the one lakh mark, but said the stock market does well whenever there is a stable government.

“So I am saying we are going to get more than 400 seats and a stable Modi government will be in power. So the share market will definitely go up,” he said.

The BSE index, which represents the country's top 30 companies, is below 72,000 after falling over 700 points in early trade on Monday. It crossed the 75,000 mark on May 3, an all-time high.

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Investor sentiment plays a huge role in stock markets, which is why political changes and elections are often linked to equity performance. Experts attribute the latest correction to a heavy influx of foreign institutional investors, rising U.S. bond yields and falling rates, and heavy selling.

Global conflicts also play an important role affecting investor sentiment and the share market.

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