Market stability, said to Finance Minister Nirmala Sitharaman, requires stable policies and taxes.

According to Finance Minister Nirmala Sitharaman, the government is optimistic that Prime Minister Narendra Modi would win back the majority in the current Lok Sabha election. Her comments were made the day after the greatest electoral exercise in history took place across the nation in various regions under the auspices of a fourth polling phase.

Market stability cannot be achieved without stable policies and taxation, according to Finance Minister Nirmala Sitharaman’s remarks on Tuesday. The Union Minister added that the government has faith that Prime Minister Narendra Modi, who is currently contesting the Lok Sabha elections, will win and take the helm for a third time in a row. Stability at the Center is necessary for a healthy financial market, which will be supplied by PM Modi’s impending return, she stated at a BSE stock exchange event.

The finance minister said that despite global uncertainty, the domestic stock market has performed considerably better than anyone could have predicted. Investors have been rewarded with respectable profits.

The finance minister asserted that the market operates on the basis of decisiveness, tax stability, and policy stability, saying there is no room for fear in it. She predicted that the BJP would come back to power at the center with a solid mandate.

Her comments coincide with the top Nifty50 index’s almost 21% return over the last year (up 3,903.1 points since May 12, 2023) on the due to optimistic growth projections, low inflation, and the trend of foreign investors choosing India as a place to invest.

The Indian market is utilizing technology quite effectively these days. said she. The minister cited various instances of improved technology bolstering market efficiency, such as Dalal Street’s successfully implemented “T+0” system, which stands in stark contrast to a number of outside markets.

Additionally, the Union minister stated that India’s percentage in the MSCI index has more than doubled, rising from 6.0% to almost 14%. The tendency toward savings in demat form rather than the previous post office format has also been aided by effective use of technology.

The minister of finance noted that there has been a boom in the more volatile derivatives market. (including futures and options contracts) by individual investors may eventually cause issues with household finances. “Any unchecked explosion in retail trading of futures and options can create future challenges, not just for the markets, but for investor sentiment and household finances,” she stated.

The minister criticized the wealth redistribution ideas of the Indian National Congress party, stating that such a strategy would worsen the state of the economy.

People want to grow, especially businessmen, and these kinds of strategies might undermine their self-esteem, she said.

The finances of households have changed across generations. We wish to protect them,” she murmured. Nine out of ten individual investors lose money on their bets in the futures and options market, according to a Sebi survey.

The Minister of Union further urged the BSE to collaborate closely with capital market regulator Sebi in order to strengthen investor confidence through strict adherence to regulations and strong standards.

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