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Lok Sabha Results 2024: Supreme Court Petition Seeks Answers on Stock Market Plunge After Election Results

By Lokmat English Desk | Updated: June 10, 2024 12:54 IST

On June 4, the day of the Lok Sabha election results, the stock market had recorded a major fall. ...

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On June 4, the day of the Lok Sabha election results, the stock market had recorded a major fall. A petition has been filed in the Supreme Court seeking information from SEBI and the central government on the huge fall in the market. The petition was filed by a lawyer named Vishal Tiwari. 

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Loss of Rs 20 Lakh Crore "The stock market picked up pace after the exit polls were released on the Lok Sabha 2024 results, but when the actual results were announced, the market witnessed a big fall. According to reports, the loss is Rs 20 lakh crore. This has once again raised questions about the regulatory system. Despite the directions of this court, nothing has changed," Tiwari said in the petition. 

An expert committee headed by Justice A. M. Sapre had issued instructions after a PIL was filed by advocate Vishal Tiwari in the Adani-Hindenburg case. It had sought directions to the government and SEBI to submit a status report on the order passed on January 3 to consider the suggestion of the expert committee headed by Sapre. The apex court had said that the Centre and Sebi should consider the recommendations of the expert committee constructively. "Necessary action should be taken to strengthen the regulatory framework, protect investors, and ensure smooth functioning of the securities market," the bench said. Big Drop on the Day of the Results The stock market picked up pace after exit polls were released regarding the Lok Sabha election results in 2024, but the market fell as soon as the actual results were announced. Stock market volatility has resurfaced. According to reports, the loss was Rs 20 lakh crore. This has once again raised questions about the regulatory system, the petition said.

Biggest Drop of the Day since Covid-19 The BSE Sensex closed 2,507 points, or 3.4 percent, higher at 76,469 after exit polls predicted a landslide victory for the BJP. However, the next day on Tuesday, the stock market fell sharply and the Sensex fell 4,390 points, or 6 percent, to close at 72,079. This is the biggest single-day decline in the last four years. The main opposition Congress had also raised the issue of the fall in the stock market on June 4 and demanded a joint parliamentary committee probe. Addressing a press conference, Rahul Gandhi attacked Prime Minister Narendra Modi and Home Minister Amit Shah, calling it a scam.

Tags: Stock Market CrashStock marketShare Market NewsLok Sabha Election Results 2024SebiNarendra ModiRahul Gandhi
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