watch
now
India’s
markets
saw
their
worst
one-day
loss
in
about
four
years
as
the
electoral
performance
of
Prime
Minister
Narendra
Modi’s
ruling
Bharatiya
Janata
Party
fell
short
of
expectations.
The
Nifty
50
plunged
5.93%
on
Tuesday,
while
the
BSE
Sensex
lost
5.74%,
marking
their
largest
loss
since
2020.
The
All
India
Market
Capitalization
index,
tracked
on
the
Bombay
Stock
index,
lost
over
31.06
trillion
rupees,
or
about
$371
billion
on
June
4
alone.
The
losses
on
Tuesday
meant
the
Sensex
index
erased
all
its
gains
this
year
in
a
single
day,
going
from
a
5.85%
year-to-date
gain
on
Monday
to
a
0.22%
loss
position.
Meanwhile,
the
Nifty
50
saw
its
7%
year-to-date
gain
as
of
Monday
drop
to
a
meager
0.7%
increase
since
the
start
of
the
year.
Modi
is
set
to
secure
a
rare
third
term
in
power,
with
the
BJP
winning
240
seats
in
the
lower
house
parliament,
but
losing
its
single-party
majority
in
a
tighter-than-expected
race.
The
BJP-led
National
Democratic
Alliance
(NDA)
coalition,
however,
clinched
294
seats,
managing
to
retain
the
parliamentary
majority,
crossing
the
272
required
to
form
the
government.
In
the
previous
general
election
in
2019,
the
BJP
secured
303
seats,
and
the
NDA
won
353
seats.
Modi reportedly said
in
March
that
he
was
confident
that
the
NDA
would
secure
more
than
400
seats.
The
opposition
Indian National
Developmental
Inclusive
Alliance
coalition,
or
INDIA,
which
is
led
by
the
Indian
National
Congress,
garnered
233
seats
—
a
much
better
result
than
was
predicted.
Pedestrians
walk
past
a
digital
broadcast
displaying
share
prices
on
the
facade
of
Bombay
Stock
Exchange
(BSE)
on
the
day
of
India’s
general
election
result
in
Mumbai
on
June
4,
2024.
Punit
Paranjpe
|
Afp
|
Getty
Images
A
Goldman
Sachs
report
issued
early
Wednesday
said
that
“even
with
a
reduced
majority,
we
don’t
think
macro
stability
will
be
compromised.”
However,
a
weaker
mandate
would
make
it
more
difficult
to
implement
structural
policy
changes,
such
as
land
reforms
to
aid
manufacturing
growth
and
farm
sector
reforms
to
enhance
agricultural
productivity
growth.
This
is
the
first
time
in
the
last
10
years
that
the
BJP
will
be
running
a
government
without
a
majority
on
its
own
in
the
Lok
Sabha
—
the
lower
house
of
parliament
—
the
Goldman
analysts
said.
As
such,
the
main
challenge
for
Modi’s
party
will
be
managing
the
coalition
partners,
who
are
likely
to
negotiate
for
key
ministerial
appointments.
“We
think
the
government
will
stick
to
their
announced
fiscal
consolidation
path
of
5.1%
of
GDP
in
this
fiscal
year,
though
we
expect
some
spending
re-allocation
towards
welfare,”
the
analysts
concluded.
