Nirmala Sitharaman on stock markets: ‘Don’t want unstable governments, predictable policies matter to investors’

Finance minister Nirmala Sitharaman said that a clear mandate in favour of BJP-led NDA government will be a good message for the stock market8 ahead of Lok Sabha election results on on June 4.

This can really go up in a ‘solid bull’s market’, she told CNN-News18, adding, “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.”

This comes as benchmark indices Nifty50 and Sensex have scaled record highs in recent days backed by macro-economic factors and anticipation of clear mandate in favour of BJP-led NDA government.

She said, “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.”

Uncertainty in the stock market is a high probability only when there is no single majority government expected to be in place, she said.

The finance minister said, “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.”