Indian shares plummeted by over 8% on Tuesday, marking their worst day in four years as results from the vote-counting in the general election showed Prime Minister Narendra Modi’s alliance falling short of a predicted landslide victory for the year 2024.
Although Modi’s bloc seemed to be securing a majority in the early counting, the numbers fell short of the landslide victory anticipated by exit polls.
The NSE Nifty 50 index dropped by 7.2%, while the S&P BSE Sensex fell by 6.6%, erasing their gains for the year. All sectors were in the red, with banks, realty, infrastructure, and oil and gas stocks taking a significant hit.
Foreign investors, who had recently added long positions after the exit polls, faced pressure as the market tumbled. Adani Enterprises and Adani Ports were among the top losers.
Despite the market volatility, investors remain hopeful that the Modi government will focus on economic growth and infrastructure development, attracting foreign investments in the process.