EAM S Jaishankar confident market volatility will ease post-elections

EAM S Jaishankar/ Shadab Khan

Minister of External Affairs S Jaishankar expressed optimism on Monday that the Indian stock market would become more steady following the Lok Sabha Elections 2024 results. Speaking at an NSE conference titled 'Indian Capital Markets: Road Map For Viksit Bharat,' Jaishankar projected a decrease in market volatility when election results are announced, reported ANI.

EAM S Jaishankar 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."

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According to the report, market experts relate the present investor concern to the ongoing parliamentary elections, which have resulted in prolonged selling pressure in the market over the last week.

Jaishankar also expressed confidence in greater private investment following the election, anticipating a strengthening of investments once the outcome is known.

"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 remarked.

Addressing future trade goals, Jaishankar emphasised India's commitment to pursuing a Free Trade Agreement (FTA) with the European Union.

However, he recognised the complications of reaching an agreement, noting that an FTA with the EU is the most difficult and complex to negotiate due to non-trade issues."

Despite the hurdles, Jaishankar stated that negotiating an FTA with the EU would remain a top trade goal for India provided negotiations go well, the ANI report added.

"An FTA with the EU is the most difficult FTA, most complex FTA to do because there are a lot of non-trade issues involved in FTA. My expectation is that if all goes well with us, it would definitely be one of our trade priorities," EAM S Jaishankar.

EAM S Jaishankar, speaking about the Chabahar port pact, said that the probable signing of an agreement between India and Iran will pave way for bigger investments.

"On the Chabahar agreement, my understanding is my cabinet colleague Sarbananda Sonawalji is today going to Iran and it is expected that we would see the long-term agreement between India and Iran on Chabahar. We've been running it on the basis of ad hoc arrangements. This is not because of any problem on the Indian side. The issue was really there was a lot of problems as to exactly who the combination of partners would be in Iran," he said.