Amid the election-led volatility seen in stock markets, External Affairs S Jaishankar Minister on Monday said that the markets will become less volatile after every round (phase) of polling.
Speaking at a media conference in National Stock Exchange (NSE) in Mumbai, the minister said, “To me it is clear where the elections are going, people may debate on the exact election numbers but I’m very sure as round after round the markets will be less and less volatile.”
In the last five days, the Nifty VIX index has increased 22 per cent in the last five days indicating increased volatility.
He said that he is witnessing a greater enthusiasm for private investments in the country and after the election outcome, the investments will further strengthen.
“I definitely see much more foreign investment coming in, but right now investors are waiting for the June 4 outcome and then they will take a call,” he added.
The world is looking for more sources of production in order to de-risk the global economy, he said.
“The world doesn’t want a single geography of production and is looking for more supply chains. The world is looking at more countries where something critical such as semi- conductor chips can be made,” said the minister.
However, the experts have predicted that the recent surge in volatility in the Indian stock market may persist for the next few weeks, and the benchmark Nifty 50 may correct for another 2-3 per cent in the coming weeks.
Another concern is over the selling of FIIs. They have remained net sellers on all sessions in May 2024. They have sold out Indian shares worth Rs 24,975 crore in the cash segment till Friday last week while the FIIs have sold out shares worth Rs 11,279 crore in the Future & Option (F&O) segment.