India: India’s markets suffered their greatest one-day loss in about four years as the ruling Bharatiya Janata Party of Prime Minister Narendra Modi did not perform as predicted in the elections.
Tuesday saw a 5.93 percent decline in the Nifty 50 and a 5.74 percent loss on the BSE Sensex, which was the worst loss since 2020.
On June 4, alone, the All India Market Capitalization Index, which is based on the Bombay Stock index, lost more than 31.06 trillion rupees, or almost $371 billion.
With Tuesday’s losses, the Sensex index lost all of its gains for the year in a single day, having gained 5.85 percent as of Monday and now stands at a 0.22 percent loss.
As of Monday, the Nifty 50’s 7 percent year-to-date gain had dropped to a pitiful 0.7 percent gain since the year’s beginning.
Election Results
Prime Minister Narendra Modi won a third term on June 4, but he will rely on allies since the BJP fell about 32 seats short of the 272-seat majority in the Lok Sabha.
The BJP (Bharatiya Janata Party)-led National Democratic Alliance (NDA) secured 291 seats, while the Congress-led INDIA bloc won 234 seats. The Congress increased its seats to 99 from 52 in 2019.
In the 2019 general election, the NDA won 353 seats while the BJP got 303 seats. According to reports, Modi expressed confidence in the NDA’s ability to win over 400 seats in March.
In 2014 and 2019, the Hindu nationalist BJP secured majorities. After exit polls over the weekend indicated that Modi and the BJP would win handily, markets surged on Monday. However, it appears that the BJP will not be able to secure a majority on its own.
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