'Chronology' of June 4 market crash raises eyes

New Delhi, NT Bureau: Congress leader Rahul Gandhi on Thursday questioned why Prime Minister Narendra Modi and Union Home Minister Amit Shah gave “specific investment advice” ahead of the Lok Sabha election results, and alleged that they caused losses of Rs 30 lakh crore to investors.

Gandhi called for an investigation by a Joint Parliamentary Committee into “this biggest-ever stock market scam”.

On May 19, Modi had said in an interview to NDTV that the stock market would rise sharply in the week around the Lok Sabha election. “On June 4, the day of the Lok Sabha election results, you will see…in that week, all the stock market programmers will get tired.”

Six days earlier, Shah had also told NDTV that the stock market would surge after June 4. “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 June 4,” the home minister had said. “It will shoot up.”

However, on the day when votes were counted, markets plunged as it became clear that the BJP would not win a majority on its own and would need the support of allies to retain power.

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 five crore families — Rahul Gandhi

On that day, the Sensex fell 4,389.73 points or 5.74% to touch 72,079.05, and the Nifty 50 fell 1,379.40 points or 5.93% to reach 21,884.50 at the closing of markets.

The stocks of Adani Group companies were particularly hit. Congress leaders have accused the BJP-led Union government of favouritism towards the Adani Group.

Gandhi on Thursday said that this was the first time that a prime minister had made such comments about the stock market.

“Why did the prime minister and home minister give specific investment advice to the 5 crore families investing in the stock markets?” the Congress leader asked.

“Is it their job to give investment advice to the people?” Gandhi claimed that Modi and Shah were “privy to data on actual election results” and had access to Intelligence Bureau reports.

“He has information that the exit polls are wrong and he knows what is going to happen because of the IB data and his own party data,” he said at a press conference. The elections defied the predictions of exit polls, most of which had predicted that the BJP-led NDA would get over 350 seats.

Former IAS officer demands ED inquiry

Former IAS officer EAS Sarma on Thursday demanded an inquiry by the Enforcement Directorate into the subject.

In a letter to Economic Affairs Secretary Ajay Seth, Sarma wanted to know if market regulator Sebi has taken any action to calm the market or initiated an investigation to ascertain the reason behind sharp fluctuations in stock market movement on June 3 and 4.

"It is disturbing that a combination of factors triggered a stock market surge on June 3, 2024, followed by a huge crash that followed, wiping out the hardearned savings invested by small and marginal investors, allowing bigger stockmarket sharks to profiteer. Even today, the market has not recovered," said Sarma, who was a Secretary in the Finance Ministry between 1999-2000.

DEADLY TRAIL

May 13- Amit Shah on a TV channel said 'buy stocks before June 4.'

May 19- Narendra Modi said the stock market will hit record high on June 4.

June 1- All pollsters released exit polls, predicting a big win for BJP.

June 3- Stock market broke records and reached an all-time high.

June 4- Biggest stock market crash. Investors lost over Rs 30 lakh crore as BJP couldn't get a majority.