FM predicts a solid bull run

Finance Minister Nirmala Sitharaman predicted a solid bull run for the Indian stock markets post the election results on June 4.

Explaining the rationale behind her confidence, Sitharaman said, “There is a lot of volatility globally and so many factors that influence the markets but primarily, it is the domestic factors. The key thing is political stability.”

Elaborating further, she said, “Markets like political stability which comes from a government with an absolute majority unlike coalition governments. It was only during Atal Bihari Vajpayee’s tenure when he ran a big coalition and yet the markets responded well. Political stability brings with it a predictability in terms of policy and taxation and the mandate to back those decisions. I am confident of a solid bull run after the counting is over.”

Normally, one would expect the Union Finance Minister to stay away from predictions that could be speculative in nature and have a huge impact on the bourses, but here, Sitharaman has cleverly pointed out the correlation between the markets and stable governments in such a way that she comes across as not making any prediction but merely stating the obvious.