$5 trillion not enough! PM Modi says both stock market and BJP will hit record high on June 4

While recalling that when he was elected Prime Minister for the first time in 2004, the scaled the 25,000 mark and has now tripled to near 75,000-level, Modi said that the trust the stock market places in the BJP government is evident in its remarkable performance over the past decade.

"Over the past 10 years, if you just take a look at the number of demat accounts, you will understand how citizens have started to show confidence in the Indian economy. The number of has increased from just 2.3 crores to over 15 crores now. The number of mutual fund investors has increased from 1 crore in 2014 to 4.5 crore today. As a result, we have a broader base of domestic investment," PM Modi said.

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Domestic investors, he said, have become more active and vibrant and are playing a more substantial role in our markets than ever before. This is a clear indication of the financialisation of savings that has occurred in the last 10 years, he added.

The election season has seen FIIs pulling out over Rs 37,000 crore but domestic, retail, and HNI investors have not only bought the dip but also taken it close to all-time peaks once again.

In an earlier interview, PM Modi had told a news channel that a post-election rally could take the market to such high levels that participants will get tired. Union Home Minister Amit Shah had also told investors to buy before June 4 as the market will shoot up.

Dalal Street veteran PV Subramanyam, however, points out that the market has an uncanny habit of not listening to anybody.

"Markets have always been talked up by the then government, but sometimes the market chooses not to listen. So, you have to be careful about the fact that the market does not listen to anybody. It has its own mind. After it comes down, people will say, fairly obvious, now how long can the bull run be? So, it is difficult to think that the market will listen to the big bosses," he said.

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Historical trends also suggest that the impact of election results does not last beyond six months and the market continues with its inherent trajectory based on fundamentals. But BJP remains the Street favourite and the market may suffer from de-rating if the INDIA alliance comes to power.

"If the government changes, the one-day dip could be as much as 15% also," warns market veteran Sandip Sabharwal.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)