In the wake of India’s recent national elections, Rahul Gandhi, the leader of the Congress party’s opposition, has called for an inquiry into the significant market fluctuations, accusing Prime Minister Narendra Modi of disseminating deceptive investment advice.
Despite earlier exit poll forecasts indicating a landslide victory for Modi’s Bharatiya Janata Party (BJP) during the election campaign, the party fell short of a majority. On June 3, the day prior to the Election Commission’s declaration of results, stock markets surged in response to these predictions, only to sharply decline the following day.
Throughout the campaign, Modi and his ministers hinted that the markets would experience an upswing upon the announcement of results on June 4. Home Minister Amit Shah was quoted in a television interview advising investors to “buy before June 4, they will shoot up.”
In light of these market oscillations, Rahul Gandhi proposed the establishment of a joint parliamentary committee (JPC) to scrutinize the roles of Modi, Shah, and other BJP members. Gandhi raised concerns about the involvement of foreign investors in these transactions and sought clarity regarding their identities.
In retaliation, outgoing trade minister Piyush Goyal accused Gandhi of misguiding investors and pressuring foreign investors to refrain from investing in the country, citing apprehensions about Modi’s reelection.
Following the announcement of election results on June 4, where the BJP-led National Democratic Alliance (NDA) secured a narrow majority, the markets experienced a significant downturn, reaching a four-year low with nearly a 6 percent decrease.
The Securities and Exchange Board of India (SEBI) is reportedly examining share trading patterns preceding the exit polls and election results for any suspicious activities. However, SEBI has yet to comment on these developments.
Requests for comment from Modi’s office and Amit Shah’s aide have not received immediate responses.
