Shah, Jaishankar seek to calm market nerves

Sensex swings 1,000 pts; India VIX ends at 20.6%, highest level in 19 mths

- KHUSHBOO TIWARI & SUNDAR SETHURAMAN 

The benchmark Sensex swung 1,000 points and ended the session marginally higher on Monday. Two senior Union ministers' statements on the regime and policy continuity also gave some reprieve to investors.

After rising 997 points from the day's lows, the Sensex ended the session at 72,776, a gain of 112 points or 0.2 per cent. The Nifty rose 49 points to end the session at 22,104, a 0.2 per cent gain.

Union Home Minister Amit Shah and External Affairs Minister S Jaishankar separately on Monday said market turbulence caused by election jitters was transitory and that markets would bounce back after the results.

Speaking to a television channel, Shah said markets had fallen more steeply in the past, and it was unfair to attribute this to the elections. "Even if markets have corrected a bit on account of some rumours, I would suggest you buy as markets are going to shoot up after June 4," said Shah. He declined to comment on whether Sensex would touch the 100,000 mark but said a stable government was good for markets.

"We are going to win 400 seats, and a stable government under Prime Minister Narendra Modi's leadership will come to power, and markets will rally," said Shah.