Nifty down for 4th straight day but Amit Shah says don't link it to election
"Profit-booking is a routine phenomenon. Don't link it to elections. Those who are there for the short-term in the elections will obviously book profits. After a 1,200-1,300 point rise, going down is a very normal process. This happens 15-20 times in a year even without elections," he said when asked to comment on fears that the market may fall after election results are out on June 4.
As headline equity index is trading under pressure for the fourth straight day amid a non-stop rise in Dalal Street's fear index , result day nervousness is palpable. But Home Minister and top leader on Wednesday said the should not be linked to elections."Profit-booking is a routine phenomenon. Don't link it to elections. Those who are there for the short-term in the elections will obviously book profits. After a 1,200-1,300 point rise, going down is a very normal process. This happens 15-20 times in a year even without elections," he told when asked to comment on fears that the may fall after election results are out on .
Shah predicted that will be announced PM once again on June 4 and the BJP's seat share will cross 400-mark. "There will be a stable government and the share market will also go up," the politician said.
Earlier this month, Shah had told to buy before June 4. eventually went up to touch an all-time of 23,110.80 before profit-booking kicked off.
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Last week, Prime Minister Narendra Modi said both the BJP and will touch fresh record highs on June 4 when Lok Sabha election results would be declared.
"Our investors are well aware of the pro-market reforms we have implemented. These reforms have created a robust and transparent financial ecosystem, making it easier for every Indian to participate in the stock markets. I can say with confidence that on June 4, as BJP hits record numbers, the stock market will also hit new record highs," PM Modi said in an exclusive interview with The newspaper.
Global brokerage UBS has warned investors that the Street can be hit by a sharp knee-jerk reaction if the ruling BJP loses power. "Any unexpected outcome will likely be perceived negatively at least at first, due to political instability and possible policy paralysis weighing on business sentiment and impacting investor confidence. This could trigger knee-jerk reactions in financial markets in the near term, with equity valuations possibly testing pre-NDA levels," said Premal Kamdar of .
While domestic institutional investors keep on piling stocks, retail and HNIs are in a wait and watch mode. The pace of FII selling intensity has slowed down considerably recently.
"From the global perspective, there are positives as well as negatives. The positive is the Nasdaq setting a new record high imparting resilience to the mother market. The negative is renewed tensions in the Middle East pushing up Brent crude to $ 84.5. The US 10-year bond yield rising to 4.54% is an indication that the “higher for longer” rate regime in the US might continue. This will weigh on FII inflows once the election-related uncertainty is over," said Dr. V K Vijayakumar of .
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
