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.