Stock Market Forecast: Prime Minister Narendra Modi expressed confidence that the stock market would experience a robust surge following the announcement of election results on June 4. In a television interview aired to NDTV on Sunday, Modi attributed this anticipated growth to his government’s decade-long commitment to economic reforms. He said the BJP government's focus on fostering entrepreneurship and implementing significant economic changes. "We have done the maximum economic reforms, and encouraged pro-entrepreneurship policies," he said.
Highlighting the government's impact on the economy, Modi said, "We started at 25,000, and now the Sensex has reached 75,000 points. The more common people invest in stock markets, the better for the economy. And the risk appetite of every citizen should rise." He also mentioned that public-sector undertakings were showing remarkable performance, with stocks like Hindustan Aeronautics Ltd (HAL) achieving record highs.
"Imagine they (Opposition) tried to create fear among workers, but look how well HAL is doing," Modi remarked. HAL recently reported a 52 per cent increase in net profit, reaching Rs 4,308 crore for the January-March quarter, with revenue from operations rising 18 52 per cent to Rs 14,768.70 crore.
Despite the optimism, Indian equities have been volatile since the elections began on April 19, driven by concerns over whether the ruling National Democratic Alliance (NDA) would secure enough seats to continue its reform agenda.
The India VIX, a volatility index, has surged 47 per cent since the election commenced.
Addressing a rally earlier last week, Modi highlighted the growth of the equity markets over the past decade, underscoring Mumbai’s role as India's economic powerhouse. "See where the equity market was 10 years ago and where it is now. Lakhs of small investors today are connected to the stock markets. We are the fourth-largest stock market, and the trust of global investors is rising. The Opposition alliance wants to break this faith," he said.
Last week, Home Minister Amit Shah and External Affairs Minister S Jaishankar also addressed market concerns. Shah downplayed the market turbulence, attributing it to temporary election jitters. He suggested investors buy stocks, predicting a market upswing post-results. Jaishankar, speaking at an NSE event, expressed confidence in the election outcomes, anticipating reduced market volatility as the results neared.
As the country awaits the conclusion of the Lok Sabha elections, Modi’s assurances aim to instil confidence in the market, with hopes of a strong economic trajectory ahead.