The Indian stock market has experienced one of its most severe crashes in recent history, following the general elections that saw the Modi government suffer a significant setback.
Despite the Bharatiya Janata Party (BJP) confidently predicting a sweeping victory with 400 seats, the results fell short of even a simple majority. As the BJP formed a coalition government with allied parties, a major scandal involving stock market manipulation came to light.
In an exclusive interview with NDTV ahead of the elections, Union Minister Amit Shah confidently predicted a surge in the stock market following a BJP win. This statement led to a massive buying spree by investors, spiking the Sensex and Nifty index from their recent lows. Pro-Modi sentiment and investor enthusiasm temporarily held up the market.
However, the election results announced on June 4, 2024, triggered an unprecedented market collapse. The Sensex and Nifty plummeted over 8% in a single day, erasing billions of dollars in market capitalization. Reports indicate that the market lost an estimated ₹45 lakh crore.
Data reveals that foreign investors were particularly active on May 31, 2024, making up 58% of all share purchases on that day. This activity, coinciding suspiciously with exit poll results, has led the opposition to label it as the world’s first "exit poll stock market scam."
Rahul Gandhi, the Opposition Leader, has made strong accusations against the BJP’s top leadership, including Narendra Modi, Amit Shah, and Nirmala Sitharaman. The Trinamool Congress has formally requested the Securities and Exchange Board of India (SEBI) to investigate the matter.
The Modi government has remained silent since the scandal broke, leaving many to question whether they will be held accountable by the Indian populace.
