PM Modi's prediction of a post poll market rally comes true as Sensex, Nifty hit record highs
Sensex, Nifty have hit record highs in the last nine trading sessions, in line with what Modi had predicted about the stock market during the election campaign
Prime Minister Narendra Modi's prediction of a stock market rally after Lok Sabha elections is coming true with Sensex surging more than 5,000 points since June 4, when the results were declared. In the last nine trading sessions, Sensex and Nifty have hit all-time record highs. This has resulted in investor wealth rising by ₹42.4 lakh crore to ₹437.24 lakh crore.
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While campaigning for the Lok Sabha elections, Modi had said that the stock market would hit record highs after election results were declared. “You will see that within one week after June 4, the day election results are to be declared, market participants will get tired.”
“I can say with confidence that on June 4, as BJP hits record numbers, the stock market will also hit new record highs," he had said.
Home Minister Amit Shah also said that investors must buy before June 4 as the stock market will shoot up after the results.
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Following the elections, the statements by Prime Minister Narendra Modi and Amit Shah became a political issue as Congress leader Rahul Gandhi alleged that the June 4 crash in which investors lost ₹31 lakh crore in notional wealth was owing to manipulation in the markets. The Congress demanded a probe by a joint parliamentary committee (JPC) as the Sensex hit record high on June 3 after exit polls but fell the next day.
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Meanwhile, Morgan Stanley has predicted that the Sensex will hit 82,000 in the next 12 months. It said, “The main benefit to the market of the NDA's re-election is policy predictability, which will influence how growth and equity returns pan out in the coming five years. We believe the government is likely to continue focusing on macro stability (i.e., inflation hawkishness) to inform policy.”
