'Market volatility routine event, don't link it with elections': Amit Shah

Amit Shah on Wednesday reiterated his confidence about the BJP's return to power on June 4

Less than a week ahead of the Lok Sabha election results, Union Home Minister Amit Shah on Wednesday said that share market volatility should not be associated with the occurrence of the polls.

During an interview with television news channel NDTV, Shah remarked that market correction is a natural phenomenon.

"Profit booking is a routine phenomenon, do not link it with the (Lok Sabha) elections. People who are trading with a short term vision, obviously book profits. Hence, when the markets surge by 1,200-1,300 points, a subsequent drop of 300-400 points is a normal phenomenon," Shah said in response to a question about the share markets' nervousness.

 

"Even without the elections, this happens 15-20 times in a year. I want to reiterate that on June 4, Narendra Modi will come back, we will cross 400 and form a stable government. The share market will also go up," he added.

In another interview earlier this month, Shah had advised stock investors "to buy before June 4" as the market would "shoot up" and had urged not to link the market volatility with elections.

Indian stock markets saw intense selling on Wednesday, with the S&P BSE Sensex declining 716 points intraday to hit a low of 74,455. The NSE Nifty50 slipped 203 points to a low of 22,685.

The S&P BSE Sensex, eventually closed with a loss of 668 points at 74,503. The Nifty50 settled at 22,705. Experts attributed the ongoing market volatility to the nervousness ahead of the Lok Sabha election result.

Shah on Modi's economic policies

Shah also briefed about the economic focus of the Modi government during its potential third term. "I believe that since 2014 till now, Narendra Modi has been very clear about his government's economic policy. Be it various schemes, infrastructure, budget deficit, the stock market  or the public's rising trust in it….we have brought it on the right track," he said.

"Be it manufacturing hub, emerging sectors such as green hydrogen, electrical vehicles, ethanol…. These sectors which are set to drive the world's economy in the next 25 years….India has taken the lead as a pioneer in these segments, so we will benefit in the coming 25 years. The sectors where we lost the race in the last 25 years….like semiconductors, defence production, space missions, startup….we are reviving these sectors to fill in the gap," the senior BJP leader said.