Minister Pankaj Chaudhary Talks About Stock Market Movements After 2024 Lok Sabha Election Results
New Delhi, July 22: Minister of State for Finance, Pankaj Chaudhary, informed the Parliament that the market regulator SEBI received reports about sharp stock market movements on June 4, the day the Lok Sabha election results were declared. However, no specific information on any ‘unfair trading’ was provided.
Chaudhary responded to questions from five parliamentarians, addressing concerns about a significant fall in stock prices, which led to a loss of Rs 30 lakh crores to investors on June 4. On that day, the Sensex dropped by 4,389.73 points and the Nifty by 1,379.40 points as the BJP’s performance fell short of exit poll predictions.
Despite the initial losses, the markets recovered over the next few sessions. Investors had booked profits after positive exit poll predictions on June 3, which had caused a sharp rise in the markets. Chaudhary emphasized that stock market movements are influenced by investor perceptions, global economic scenarios, domestic macro-economic parameters, and corporate performance.
By July 18, the indices had reached record levels, with an increase of 12.9% and 13.3% respectively. The market capitalisation of companies listed on NSE and BSE, which had decreased by Rs 30 lakh crore on June 4, was recovered within five days and increased by Rs 59 lakh crore by July 18.
Chaudhary highlighted SEBI’s role in maintaining stable operations and safeguarding investor interests through regulatory and surveillance frameworks. Trinamool Congress member Saket Gokhale and Congress had raised concerns about possible ‘manipulation’ in trading activities before the election results. Both PM Modi and Amit Shah had assured that the stock markets would remain strong post-election results, which some in the Opposition interpreted as stock advice.
Doubts Revealed
Pankaj Chaudhary -: Pankaj Chaudhary is a Minister of State for Finance in India. He helps manage the country’s money matters.
Stock Market -: The stock market is a place where people buy and sell shares of companies. It’s like a big marketplace for company ownership.
2024 Lok Sabha Election -: The Lok Sabha Election is when people in India vote to choose their leaders for the Parliament. It happens every five years.
SEBI -: SEBI stands for Securities and Exchange Board of India. It makes sure that the stock market is fair and safe for everyone.
Sensex and Nifty -: Sensex and Nifty are indexes that show how well the stock market is doing. They are like report cards for the stock market.
Manipulation -: Manipulation in the stock market means unfairly changing prices to benefit certain people. It’s like cheating in a game.
Trinamool Congress and Congress -: Trinamool Congress and Congress are political parties in India. They have different ideas about how the country should be run.
PM Modi and Amit Shah -: PM Modi is the Prime Minister of India, and Amit Shah is a senior leader in his party. They make important decisions for the country.
