June 4, 2024: When Blind Faith in Influencers Led to a Market Bloodbath - The Day India Listened, Lost, and Learned..

June 4, 2024, was the day when the market closed with Nifty down by 1380 points 5.93% and Sensex down by around 4390 points 5.74%. June 4 was also the day when the election results were declared, revealing which party won the Lok Sabha elections.. It was the day when prominent leaders had claimed that the market would see a massive influx of money and substantial profits would be made, encouraging people to hold their positions.. In this article we will explore who made these statements, why they were made, and what the implications of these events are. We will also discuss the key lessons we can learn from this..

Well.. have you ever thought that in a single day, approximately 29.9 lakh crore could be wiped out from the market.. People invest in the market with the anticipation that today will be a profitable day, but instead, they face losses worth thousands of crores. Why was this anticipation there.. How was it created..

When Amit Shah was asked about the rumors in the market that a poor performance by the BJP could lead to a market crash.. he said that stock market crashes should not be linked to elections. However, if there are such rumors, I would suggest that you buy as many stocks as you want before June 4. The market will only go up. It will shoooot up..

Additionally, in an interview with CNN Nirmala Sitharaman, our Finance Minister, stated that India's stock market is set to become a solid bull market after the results of the Lok Sabha elections. She predicted this because her party was expected to win with good results on June 4, sending a positive message to the stock market and driving it up to become a solid bull market..

Our External Affairs Minister, who has no direct connection with finance, also commented that he was sure that the market volatility would decrease after each round of vote counting. He believed that the market would get a clear sense of the counting numbers as they were announced. While his second point was accurate.. the market did not become less volatile at any time on June 4. In fact, the market had not seen such volatility in many years. I am very sure, as round after round takes place, the market will be less and less volatile, he said..

Moreover, our Prime Minister Modi, mentioned that his government had implemented many reforms benefiting the market, making the financial system highly transparent and durable. He expressed his confidence that on June 4, his party would win a record breaking number of seats in the Lok Sabha, and the Indian stock market would hit new high records. The day the election results were announced the programming setup of the stock market will break down, the stock market will go up this much..

These are India's top ministers, and whatever they say is taken very seriously by the entire country. People believe their words should be listened to and followed, When these prominent leaders openly declared that the stock market would only go up on June 4 and that it would generate record breaking profits, everyone felt that a great opportunity had arrived. For those who missed making money during the covid period, this was a new chance. People invested in the market with the hope that the returns they usually get from an FD over 1, 2, or 3 years might be achieved in just one day. Without any analysis, understanding people started pouring money into the market. Some were doing option trading, buying call puts, investing in stocks, intraday trading, or long term investments.. money was just being thrown into the market..

On June 3, the market gave a slight signal that what was being said might be true. Seeing this move on June 3, many people invested even more money… Then came June 4, the day when the top ministers had said it would be a money making day in the market. Instead, the market witnessed a loss of approximately 30 lakh crore, with some reports even stating the number was as high as 40 to 50 lakh crore. This situation of making trades based on others words and then incurring losses is very common.. On one hand, these influential figures were making recommendations and predictions about market movements. Their influence in the financial space is unmatched. They influenced people and gave suggestions. The key question at a technical level is whether this instance should be classified under fin fluence or not..

But the discussion doesn't end with these prominent ministers. On Saturday, the day of the last phase of polling, news channels brought out exit polls. Some exit polls predicted a clear cut victory for the NDA, Zee News, AajTak, NDTV, CNA, Etc. big names, big confidence, discussing these exit polls on major channels. Some projected 360 seats for the NDA, others 370, 380, and in some cases even 400 plus seats, The opposition party was not being given much importance.. TV media houses declared it a one sided victory. In simple terms, people believed that the NDA or BJP would form a strong government again, which was expected to lead to a clear victory. A clear victory means a strong government, and a strong government means prosperity in the market..

The market operates on perception, and the market movements on June 3 and 4 clearly proved that. The market saw a high move on June 3 based on perception, and people invested new money. On June 4, those who intended to make real money which are not retail traders but those with control and power executed their moves. What happened behind the scenes is a matter for further investigation, but the reality is that people have lost money lakhs and crores of rupees..

Prominent leaders and influential individuals, whether movie actors, sports personalities, or politicians, need to think carefully before making any statements in the financial, investment, or stock market space. They must understand that people act based on their words.. Those who are fans of these influential figures, including you, must understand that unregistered individuals without a SEBI license are not allowed to give financial advice. You should not follow their advice, no matter who they are. This example clarifies that even if it’s the Prime Minister, you should not blindly follow anyone’s advice in the financial or investment space..

There are also influencers on platforms like YouTube, Telegram, and Instagram. If you have understood this and then made a technical or financial decision, that's good. But if you invest money blindly based on someone's advice, it means you are driven by greed. You need to remove that emotion from your mindset..

If you've made it this far, before you go, please share in the comments did you incur financial losses on June 4.. How much did you lose..

Thank you for your time??

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