Indian opposition leader Rahul Gandhi has called for an investigation into a stock market crash that affected investors following the general election results announcement. Gandhi accused senior leaders of the ruling Bharatiya Janata Party (BJP) of misleadingly predicting a surge in stock prices after June 4, the day results were declared, leading to significant financial losses for investors.
Gandhi, representing the Congress party, alleged that Prime Minister Narendra Modi encouraged people to buy stocks before the election results, resulting in losses when the market crashed. He has urged the formation of a Joint Parliamentary Committee (JPC) to investigate the alleged scam and the roles of Modi and senior ministers in the matter.
The controversy centres on statements made by BJP leaders, including former Home Minister Amit Shah and ex-Finance Minister Nirmala Sitharaman, who advised people to buy stocks, suggesting a market surge post-election. In May, Shah told NDTV: “Stock market crashes should not be linked with elections, but even if such a rumour has been spread, I suggest that you buy (shares) before 4 June. It will shoot up.”
Gandhi claims this advice led to the biggest scam in India’s stock market history, benefiting certain “dubious foreign investors” and causing massive financial losses for Indian investors. He also accused the BJP of fabricating exit polls that falsely predicted a BJP majority, leading to heavy stock buying on June 3. Contrary to these predictions, the BJP failed to secure an outright majority, with the National Democratic Alliance (NDA) winning only 293 seats, falling short of the predicted 360-370 seats.
Gandhi argues that the BJP was aware of their likely performance through internal surveys and intelligence feedback but still promoted misleading exit polls, resulting in a market crash on June 4.
Departing Trade Minister Piyush Goyal refuted Gandhi’s allegations, claiming that Indian investors, not foreign investors, benefited from the market fluctuations. Goyal stated that foreign investors sold shares during the market upswing in April and May, which Indian investors bought. When the market crashed on June 4, Indian investors again capitalized by buying at lower prices, he said.
Congress leader Jairam Ramesh dismissed Goyal’s explanation as “rubbish,” stating it failed to address the specific concerns raised by Gandhi. The BJP has not responded to Ramesh’s allegations.
