By Aanworld Desk | Edited by Vaishali Verma| May 31, 2024, 08:29 AM IST
Union Finance Minister Nirmala Sitharaman has underscored the importance of having a stable, single-majority government to maintain investor confidence and ensure stock market stability. Speaking to CNN-News18 ahead of the Lok Sabha election results on June 4, Sitharaman emphasized that a clear mandate in favor of the BJP-led NDA government could lead to a robust bull market.
“Certainly, Indian stock markets have a lot to celebrate,” said Sitharaman. “They are showing from the last six to eight months that they favor stability and predictability, which a single majority government provides. Investors want a government that offers consistent policies and minimizes uncertainties.”
This statement comes as India’s benchmark indices, Nifty50 and Sensex, have reached record highs. These gains are attributed to favorable macroeconomic conditions and market anticipation of a clear electoral mandate for the BJP-led NDA.
Sitharaman noted that stock market uncertainty is more likely in the absence of a single majority government. “Uncertainty in the stock market is a high probability only when there is no single majority government expected to be in place,” she said.
The Finance Minister highlighted the benefits of having a stable government led by Prime Minister Narendra Modi, which has been the case in the last two elections. “Indian people have seen in the last two elections that giving a single majority to Prime Minister Modi results in a stable government. This stability ensures predictable policies and consistent economic frameworks, all of which are crucial for the stock market.”
Sitharaman’s comments reflect the broader market sentiment that values a predictable and stable political environment. As the nation awaits the election results, investors are keenly watching for signs that will influence the economic and market trajectory in the coming months.
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