BJP's decisive win may send stock market into a strong bull run, says FM Nirmala Sitharaman: Report
New Delhi: Finance Minister Nirmala Sitharaman has stated that a decisive mandate in favour of the BJP-led NDA government on June 4 would send a positive signal to the stock market, and may drive it into a 'solid bull market'.
In an exclusive interview with CNN-News18, Sitharaman said, “It will indicate stability and that will mean a good message for the stock market… and therefore it can really go up… it will be a solid bull's market then.”
The benchmark indices Nifty50 and Sensex have recently soared to record highs, driven by favourable macroeconomic factors, strong earnings, and the anticipation of a decisive mandate in favour of the BJP-led NDA government.
"Certainly, Indian stock markets have a lot to celebrate… and they are showing from the last six to eight months… equally, markets have their own wisdom in seeing what is going to make an economy sound stable and predictable in a way given minimum level of uncertainties and also they want the government to be stable. They don’t want unstable governments which are normal products of coalition governments,” the Finance Minister told CNN-News18.
Media reports have indicated that market participants are engaged in betting on the ruling NDA alliance’s third consecutive run.
FM Sitharaman underscored that instability in the stock market is highly likely only when a single party does not attain majority.
“Indian people have seen in the last two elections giving a single majority for Prime Minister Modi… and, as a result a stable government is in place … which gives predictable policy, predictable and consistent tracks, framework… all these matter to the stock market,” Sitharaman added.
Previously, Prime Minister Modi suggested in media interactions that the markets are likely to reach record highs following the June 4 election results.
In contrast to major global economies struggling with slow growth and high living costs, as highlighted by recent IMF growth estimates, India's domestic stock market presents a starkly different scenario.
This difference, amidst the global asset price volatility, is certainly a cause for celebration, according to the Finance Minister.
Finance Minister Sitharaman also described the outlook revision by rating agency S&P as a 'big, good omen' for Prime Minister Modi, the country, and the economy.
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