On June 4, 2024, at 9:18 a.m. ET, the performance of India’s Nifty 50 index was closely watched.
Traders in Mumbai were taken aback as the election results in India revealed a surprising outcome for Narendra Modi’s government. The markets experienced a significant 6 percent drop by the end of Tuesday’s trading session, erasing most of the year’s gains.
India’s stock market had been thriving due to economic growth and confidence in Modi’s leadership. Despite the recent decline, the Nifty 50 index had nearly tripled since Modi took office.
However, leading up to the election, India’s main indexes faced uncertainty. Companies linked to Modi, such as the Adani Group, saw a decline in their stocks as election results unfolded.
Although Adani Group’s stocks plummeted initially, they gradually recovered as government support and investor confidence remained strong. On Tuesday, Adani Enterprises saw a 19 percent drop in value.
Despite Modi securing enough seats for a new government, the majority was slimmer than expected. This outcome was better than some predictions, offering a sense of relief to professional investors.
With global interest in India’s potential, finding investment opportunities had become challenging. While the market had been highly favored, there was a growing need for corrections to balance out the recent surge in small-time local investors.
India’s economy is expected to continue growing steadily, providing a positive outlook for investors despite the recent market fluctuations.
2024-06-04 08:48:44
Source from www.nytimes.com