FM Nirmala Sitharaman warns retail investors of futures and options market risks

She assured everyone that there is no need for investors to worry about the outcome of the ongoing polls.
Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala SitharamanPhoto | ANI

MUMBAI: Unchecked explosion in the riskier futures & options market by retail investors can create problems for their household finances, warned outgoing finance minister Nirmala Sitharaman who also assured Dalal Street about the stability and majority of the next Modi government.

Discounting the recent volatility in the market and the heavy selloff by foreign investors, the minster, addressing business editors here on Tuesday said, “I inherently believe that the stock market and its conduct is on its wisdom. It has its own assessment of the situations, the global situations and other stock markets situation, etc, and the market watches these very closely and behaves on its own wisdom. But all I can assure you and everyone out there is that there is absolutely no need for investors to worry about the outcome of the ongoing polls.”

“Absolutely, there is no doubt about Prime Minister Modi and BJP will return with good numbers, no need for volatility. There is no need for the volatility index to fluctuate the way it has been doing in recent days. There is no need for VIX to fluctuate at all,” as the Modi government has been providing predictability in policies and taxation, the two fundamental things that markets functions on.

“Unless you have predictable certainty, of course I am not talking about certainly as a carved in stone certainty. The human nature is that, people prefer having a certain predictable certain stability” which BJP has been providing.

It is significant to note that after the first phase of polling, the BJP and particularly Modi and home minister Amit Shah, have been silent on crossing the 400-mark, something the party went to town with in the run-up to the hustings.

As the polling progressed each of the four phases saw voter apathy and the resultant low voter turnout to the tune of 3-5% on average, the markets especially foreign funds were getting jittery about Modi may come back with a much lower mandate. FPIs have sold off close to Rs 18,000 crore of equities this month alone.

‘No need to worry about poll outcome’

Sitharaman said the market and its conduct is on its wisdom. The market watches these developments closely and behaves on its own wisdom. She assured everyone that there is no need for investors to worry about the outcome of the ongoing polls.

FPIs jittery about low voter turnout

As the polling progressed each of the four phases saw voter apathy and the resultant low voter turnout to the tune of 3-5% on average, the markets especially foreign funds were getting jittery about Modi may come back with a much lower mandate

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