Consider buying stocks before June 4, the market will soar: Amit Shah

In a sensational remark amid a stock market continually in the red, Union Home Minister Amit Shah on Monday urged investors to consider buying stocks before June 4.

Shah, in an interaction with NDTV, warned of a link between recent stock market fluctuations and the 2024 Lok Sabha elections.

The Minister of the Interior was optimistic and predicted a rise in the national stock market.

“I can’t anticipate stock market movements. But normally, as soon as a stable government is formed at the Centre, the market witnesses a rally. I see over 400 seats won by the Bharatiya Janata Party, a stable Modi government coming and hence a rise in the market,” he said.

It is worth noting that in the last few sessions, the stock markets have made huge corrections in the last few sessions due to various factors.

On rumors that stock market crashes indicated poor performance of the BJP, Minister Shah pointed out that markets had already made larger corrections several times.

Markets notably fell on Monday following a sharp sell-off by foreign institutional investors (FIIs) in May. Analysts linked the uncertainty to the outcome of the vote.

The crack resulted in a loss of Rs 4.85 lakh crore by investors since the last trading session on May 10. Early trading showed that only 910 of 3,431 stocks were trading in green while over 150 stocks hit their lower circuit.

According to SM Shah’s affidavit filed with the Election Commission of India (ECI), the minister has a stock portfolio valued at around Rs 17.46 crore while his wife also holds shares worth around Rs 20 crore.

The market reversed from Monday’s daily low and ended with a marginal gain. However, investors remain concerned about the progress of the general elections and the high valuation.

The absence of major positive triggers and flight of FIIs from the domestic market will keep the short-term trend low.