PM Modi, Amit Shah’s bullish claims for Indian stock market shatter as Nifty 50 Sensex crash 8% on Election results 2024

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₹40 lakh crore. All the sectoral indices were trading with substantial losses, particularly public sector unit (PSU) stocks.This market reaction starkly contrasts with the optimistic projections made by Prime Minister Narendra Modi and Union Home Minister Amit Shah last month.

In interviews with various news channels, both leaders had predicted a robust market rally on June 4, coinciding with the announcement of the election results.Also Read: Stock market today: Investors lose ₹36 lakh crore as election race gets tighter than what exit polls predictedForecasting a surge in the domestic stock market, Shah had even urged investors to consider purchasing stocks before June 4, the election results day. He projected that the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) would win over 400 seats, expecting a stable Modi government at the center, and consequently, a rising market.However, the trends so far show NDA leading in less than 300 seats with the BJP alone strugglingf to cross the halfway mark of 272 seats.“As the trends are emerging,the landslide victory as predicted by the exit polls does not seem to be happening.This is likely to make the government to have second thoughts on the difficult economic reforms and the same may not be as aggressive as earlier anticipated.