Congress Demands JPC Investigation into 4th June Stock Market Crash, Asks 3 Questions to PM Modi, HM Shah
Moneylife Digital Team 07 June 2024
While terming the 4th June stock market crash immediately after the record high following the exit poll on 3rd June as the 'biggest-ever stock market scam', the Indian National Congress has demanded an investigation by a joint parliamentary committee (JPC). Congress also asked three questions to prime minister (PM) Narendra Modi and home minister (HM) Amit Shah for asking investors to buy stocks before 4 June 2024, when the counting of votes took place for the general election. 
 
Speaking with the media, Rahul Gandhi alleged that India's common people (investors) lost Rs30 lakh crore in the stock market on 4th June. "We are absolutely convinced that this is a scam. Somebody has made thousands of crores of rupees at the cost of Indian retail investors, and the PM and the HM have given an indication to buy, and this is a criminal act. So, we demand a JPC to investigate this."
 
He said on 13 May 2024, the home minister advised buying shares before 4th June, a clear indication to retail investors and others to buy stock. "On 19th May- for the first time and then repeatedly until the 28th May, PM Modi says that the stock market is going to break records on 4 June 2024."
 
"Finally, on 1st June, completely fictitious exit polls are released. These investors are given a completely wrong impression and on the 3rd June, as we all know, the stock market breaks all records and then crashes on the 4th June. Whoever has made money has made money as the stock market rose and also as the stock market crashed and we are interested in having a JPC to investigate the role of the PM, the role of the HM, role of Bharatiya Janata Party (BJP) members, and also those people who have done this fake exit polls and finally we want to understand who are the people, these foreign investors who did these trades. So, we want an investigation for that," Mr Gandhi said.
 
The Indian stock market faced a massive selloff on 4 June 2024, the day of vote counting for the general elections. The 30-share S&P BSE Sensex plummeted 4,389.73 points or 5.74%, while the NSE Nifty-50 tumbled 1,379.40 points or 5.93% to slip below the 22,000 mark. This sharp decline erased gains accumulated over the past four months, and it is said to be the biggest single-day fall in the NIFTY over the past four years as the markets reacted to the BJP falling short of a majority. The unexpected election outcome triggered a wave of fear selling in the domestic market, reversing the recent substantial rally.
 
On 3rd June, the stock market witnessed a remarkable rally ahead of the general election results, recording its strongest trading day in three years. The markets skyrocketed on an optimistic wave fuelled by exit polls predicting a resounding victory for the BJP and its National Democratic Alliance (NDA) partners on the prospect of a stable government at the centre and continuity of economic policies. The broad-based rally cut across market-capitalisation segments, with both large-cap and smaller stocks experiencing significant gains. 
 
That day, S&P BSE Sensex jumped 3.56% to 76590.80 points, while the NSE Nifty ended the day 3.25% higher at 23263.90 points.
 
However, the BJP dismissed Mr Gandhi's charges as 'baseless'. Hitting back at teh Congress leader, the BJP accused him of conspiring to scare domestic and foreign investors. The stock market went down when the Congress was seen gaining in seats on the day of the poll result on 4th June but has now begun rising as the PM Narendra Modi-led government is set to return to office for a third consecutive term, it claimed.
 
BJP leader Piyush Goyal says, "About 10 years ago, during the rule of the Congress-led United Progressive Alliance (UPA), India's market cap was only Rs67 lakh crore. Mr Modi govt inherited it in May 2014, and it stands at Rs415 lakh crore today. The retail investors of the country benefitted the most due to this increase in market cap."
 
Here are the three questions asked by the Congress party...
1. Why did the PM and HM give specific investment advice to the five crore families investing in the stock markets? Is it their job to give investment advice to the people?
 
2. Why were both interviews given to the same media house owned by the same business group which is also under SEBI investigations for manipulating stock markets?
 
3. What is the connection between the BJP, the fake exit pollsters and the dubious foreign investors who invested one day before the exit polls were announced and made huge profits at the cost of 50mn (million) families?
 
During the press conference, responding to a question about a joint investigation by the JPC into the Adani-Hindenburg issue and the stock market crash, the former president of the Congress said, "This (the stock market crash) is a broader issue than just the Adani issue. It is connected to the Adani issue but this is a much broader issue. This is directly the PM and the HM, who are privy to data on actual election results, who have reports from the intelligence bureau (IB), who have their own data, and who are advising retail investors to buy stock… this has never happened before."
 
"And by the way, PM Modi never commented on the stock market before this. This is the first time the PM commented very interestingly and multiple times, one after the other, saying that the stock market is going to boom, the stock market is going to boom, the stock market is going to boom and at the same time, he has information that the exit polls are wrong; he has information that… he knows what is going to happen because he has IB data and he also has his own party data," Mr Gandhi said.
 
On another question that he is alleging the involvement of the PM and the HM, the Congress leader replied saying, "Yes! That is what I am saying. I am saying that people very high up in the BJP have carried out the scam. I am saying- they had partners who carried out these exit polls. We would like to know if these exit polls were actually carried out and if people were actually sent out. We would also like to know the methodology of these polls. We would like to understand who these investors are. We have some sense of who these investors are."
Comments
nandakumarms
1 week ago
Moneylife thinks this is a serious thing that has to be published! Okay, I understand. This congi claim bashes BJP/Modi and so ML finds it worthy to publish! Beyond this there is no substance whatsoever in this nonsensical claim!
parimalshah1
1 week ago
RaGa thinks JPC is the answer to all the losses! His fake narratives know no bounds. How would the PM know the result before counting of the votes. Are the agents of Indi group sleeping in front of strong rooms where EVMs are stored? Such humbug claims make one feel this guy needs help from a shrink.
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