Markets will become less volatile after every phase of poll, says Jaishankar

Union Minister Jaishankar predicts market volatility will decrease as election phases pass, ensuring strong government and economic growth.

With markets turning volatile owing to fears of an uncertain outcome of the Parliamentary elections, Union External Affairs Minister S. Jaishankar on Monday said the volatility would reduce with the passing of every poll phase.

“To me, it is very clear, where the election is going... people may have a debate on the exact number and in a democracy they should be debating it also,” he said.

“I am very sure that as round after round takes place, market would be less and less volatile because markets will get a sense of where those numbers will end up,” he said while speaking at a function organised at the National Stock Exchange of India (NSE).

“I am very confident that those numbers will end up very very good for us,” he added.

On Monday, the S&P BSE Sensex witnessed volatile movements of 997.5 points both ways during intraday trade. It dramatically recovered losses and closed with gains of 112 points at 72,776 points at close.

Earlier in the day, Union Home Minister Amit Shah reportedly tried to delink the market volatility with the general elections and stated that it could be due to rumours.

Meanwhile, Mr. Jaishankar while speaking at a seminar on Indian Capital Markets, said, “I have every confidence that we will not only have a strong and a stable government, but will have the government with a stronger majority, and therefore, with a greater ability to take decisions which will take this country forward.”