The stock market is very volatile due to the election. The stock market has been corrected around 3% in the last few days. Rumours are happening in the market that the BJP is not getting a majority in upcoming elections. Due to this investors are fearful and start selling their stocks.
The stock market opened flat but saw a deep correction. At one point today the nifty was trading at 21850 and down by 1% but after the interview with Amit Shah, the bull took back the nifty again to 22100.
Home Minister Amit Shah told NDTV in an exclusive interview on Monday that the correction in the stock market should not linked with the election. Volatility in the stock market is due to other factors and these fluctuations aren’t solely driven by political events. It is common to see these kinds of fluctuations in the stock market.
Amit Shah also suggested that the stock market will see a new time high after June 4 as the election results will be out and the Modi government is again going to form the government.
In the interview, Amit Shah again repeated that the NDA government is going to get more than 400 seats in the upcoming elections. Mr Shah refused to comment on whether the Sensex touched the 1 Lakh level or not but he is confident that the stock market is going to inform well in the coming future due to economic and infrastructure development going on in the country.
After this is interview gets confident and the market starts moving in the upward direction only. Investors are looking for a stable Government and in the last five years of the Modi government stock market performed well. In the last five years, Nifty has given more than 90% of Return. Investors are also expecting the Modi government will again form the government.
Modi government policies emphasize development and infrastructure. Where the other countries are going in a recession our country’s GDP is growing at a rapid pace. Due to the economic policies of the government, many analysts believe that this is the best time to invest in India.
Read: Top Liquor Stocks in India
Conclusion
Volatility in the election phase is very common and new investors can witness that as well. Whatever the outcome of the election it will be known only on 4 June but this interview of Amit Shah has given a lot of confidence to investors to again invest in the market and remain invested.
