Rahul Gandhi, Congress leader, addressed a press conference at (All-India Congress Committee) AICC HQ in New Delhi on June 6, 2024, alleging that Prime Minister Narendra Modi and Home Minister Amit Shah were “directly involved” in the June 4 stock market crash, on the day results of Lok Sabha Election 2024 declared, that “wiped out” ₹30 lakh crore of investor wealth demanded a joint parliamentary committee (JPC) to probe the matter.
The exit polls largely predicted a huge win for the Bharatiya Janata Party (BJP) and were the trigger for a 3% surge in the markets on the trading day immediately after, calling it “the biggest stock market crash scam” at a press conference held at the Congress headquarters.
However, Gandhi’s accusations go beyond the results of the exit surveys. One day prior to the exit polls on May 31, there was a significant spike in stock activity. Speaking at a stock market rally were PM, HM, and FM. HM and FM made a stock purchase request. Why did HM advise 5 lakh crore retail consumers on investments?” At a press conference on Thursday, June 6, 2024, Gandhi posed the question.
Monday saw a strong increase in markets as exit polls indicated that the BJP-led NDA would easily win the Lok Sabha elections. The BSE benchmark saw its largest one-day increase in three years on Monday, rising 2,507.47 points, or 3.39%, to close at a record closing high of 76,468.78. The NSE Nifty ended at 23,263.90, up 733.20 points, or 3.25%. The rally assisted BSE-listed businesses in increasing their market capitalization to ₹14 lakh crore, bringing their total market capitalization to a record high of ₹425 lakh crore or $5.13 trillion.
However, when benchmark indices saw a significant decline tracking election results on Tuesday, the market capitalization of BSE-listed firms dropped nearly ₹30 lakh crore, as it became evident that the BJP would not be able to achieve the majority mark of 272 on its own.
Once again, the market capitalization of companies listed on the BSE was less than ₹400 lakh crore. The Nifty 50 settled 1,379.40 points, or 5.93%, at 21,884.50, while the Sensex finished 4,389.73 points, or 5.74% lower, at 72,079.05 at close.
Posing further questions about the media outlet that was selected to provide this investing advise.
Reactions on Rahul Gandhi’s JPC investigation
Hours after Rahul Gandhi alleged that Prime Minister Narendra Modi and home minister Amit Shah were “directly involved” in what he described as the “biggest stock market scam”, Union minister Piyush Goyal termed the allegation “baseless” and accused the Congress leader of “hatching a conspiracy to mislead investors while PM Modi working to make India third largest economy.
Rahul Gandhi of the Congress was targeted by Assam Chief Minister Himanta Biswa Sarma for remarks he made recently about a purported stock market “scam” in the run-up to the 2024 Lok Sabha elections, without mentioning Gandhi directly. It was noted by Sarma that just a few days after plunging nearly six percent, the Sensex reached an all-time high on Friday.
Demand for JPC probe into Rafale deal by Rahul Gandhi
The Opposition has been demanding an inquiry by a Joint Parliamentary Committee (JPC) into the Rafale deal. After the Supreme Court dismissed petitions seeking a probe into the Rafale deal, Congress president Rahul Gandhi reiterated his allegation of corruption and argued that if a JPC probe is conducted, the names of Modi and industrialist Anil Ambani will come out.
What is a Joint Parliamentary Committee (JPC)?
A Joint Parliamentary Committee (JPC) is set up to examine a particular bill presented before the Parliament, or for the purpose of investigating cases of financial irregularities in any government activity. The JPC, an ad-hoc body, is set up for a given period of time and is aimed at addressing a specific issue.
