Confidence growing in stock market, says FM Nirmala Sitharaman

FM said the market has its own understanding of what it deals with the companies

Union Finance Minister Nirmala Sitharaman on Friday said confidence was growing in the Indian stock market, on a day when the BSE Sensex closed above 60,000 points for the first time.

Addressing the media at an event here, to a question on the stock market, she said the market has its own understanding of what it deals with the companies.

The finance minister said there is transparency in the listing process of companies and related regulations.

She said “today retail and small investors are taking keen interest in the stock market and investing in it. Earlier, retail investors were participating through mutual funds".

“Now they are going through mutual funds and also go directly and participate (invest in stock market) through demat accounts. Therefore, today interest in the stock market is growing and more investment is taking place and more retail investments are taking place and all it is happening in a transparent manner,” the finance minister said.

“As a result, confidence in the Indian stock market is growing,” she stated.

She further said that the confidence in the Indian stock market is growing as retail and small investors are keenly investing money in the share market.

On the broader economy, Sitharaman said it is on a sustained path of revival and cited the rise in the goods and services tax (GST) collections and direct taxes to support her assertion.

“I can see very clearly signs of revival and good signs of revival. Otherwise, my revenue collection would not be where it is, both the GST and direct taxation,” said Sitharaman while replying to a question on whether the economy has returned to its pre-Covid level.

She said the half-yearly target has already been achieved in direct taxes.

“And GST’s collections on an average per month is somewhere in the range of Rs 1.11 trillion and Rs 1.12 trillion. Probably it can safely be said it will be somewhere in the range of Rs 1.15 trillion per month,” she disclosed.

“These are not small indicators, these are not some sporadic indicators. They clearly show that the economy is on a sustained path of revival,” she said.

The finance minister was taking part in a Bharatiya Janata Party (BJP) event in Panchkula in Haryana.