A clear mandate in favour of BJP-led NDA government on June 4 will be a good message for the stock market, which can really go up in a 'solid bull's market', Finance Minister Sitharaman told CNN-News18 in an exclusive conversation.
“It will indicate stability and that will mean good message for the stock market… and therefore it can really go up… it will be a solid bull's market then,” FM Sitharaman said in the exclusive interacton with News18. Benchmark indices Nifty50 and Sensex have scaled record highs in recent days, supported by macro-economic factors and earnings as well as the anticipation of clear mandate in favour of BJP-led NDA government.
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"Certainly, Indian stock markets have a lot to celebrate… and they are showing from last six to eight months… equally, markets have their own wisdom in seeing what is going to make an economy sound stable and predictable in a way given minimum level of uncertainties and also they want government to be stable. They don’t want unstable governments which are normal products of coalition government,” the Finance Minister told CNN-News18.
Moneycontrol had gathered in May that market participants are betting on the ruling NDA alliance is come back to power.
FM Sitharaman added that uncertainty in the stock market is a high probability only when there is no single majority government expected to be in place. “Indian people have seen in last two elections that giving single majority for Prime Minister Modi… and, as a result a stable government is in place … which gives predictable policy, predictable and consistent tracks, framework… all these matter to the stock market,” Sitharaman added.
Earlier, Prime Minister Modi too had indicated in his media interactions that markets should hit record highs after the June 4 election verdict.
Some of major global economies have been battling slow growth and high cost of living according to recent growth estimates by IMF, all of which has added to the volatility in asset prices. Finance Minister said that India's domestic stock market offer a sharp contrast when compared to the uncertainty of what has been prevailing outside India, and certainly is a reason to celebrate.
FM Sitharman also called the outlook revision by rating agency S&P as a 'big, good omen' for Prime Minister Modi, the country, and the economy.
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