The opposition in India has accused Modi of involvement in a ‘stock market scam’

Indian opposition leader Rahul Gandhi has called for an investigation into a stock market downturn that coincided with the conclusion of the general election. He alleges that prominent Bharatiya Janata Party (BJP) figures made misleading forecasts about a post-election surge in stock prices, leading to financial losses for investors. Gandhi, representing the Congress party, claims that Prime Minister Narendra Modi encouraged stock purchases ahead of the election results, contributing to losses when the market subsequently declined. The BJP has denied these accusations.

Gandhi has called for a Joint Parliamentary Committee (JPC) to examine the alleged manipulation and the involvement of Modi and senior BJP officials. He asserts that Modi, along with former Home Minister Amit Shah and ex-Finance Minister Nirmala Sitharaman, advised individuals to invest in stocks before June 4, anticipating market growth following a BJP victory.

Describing it as “the biggest scam” in India’s stock market history, Gandhi alleges that certain “dubious foreign investors” benefitted from the manipulation, resulting in significant losses for Indian investors. Departing trade minister Piyush Goyal has refuted Gandhi’s claims, accusing him of misleading investors.

Exit polls had initially predicted a comfortable BJP victory, but the actual election results deviated significantly from these projections. Gandhi contends that the exit polls were “fake” and accuses the BJP of misrepresenting its electoral prospects. He alleges that this misinformation led to significant stock purchases on June 3, followed by a market crash the next day, resulting in substantial financial losses.

Goyal maintains that Indian investors ultimately benefitted from the rise and fall in stock prices, as foreign investors sold shares at high prices in April and May, which were subsequently bought by Indians. However, Congress leader Jairam Ramesh has dismissed Goyal’s explanation as inadequate, prompting further scrutiny of the BJP’s handling of the situation.