{"id":65546,"date":"2024-06-04T13:39:09","date_gmt":"2024-06-04T13:39:09","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/04\/indias-stock-market-tumbles-on-close-run-election-result\/"},"modified":"2024-06-04T13:39:09","modified_gmt":"2024-06-04T13:39:09","slug":"indias-stock-market-tumbles-on-close-run-election-result","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/04\/indias-stock-market-tumbles-on-close-run-election-result\/","title":{"rendered":"India\u2019s Stock Market Tumbles on Close-Run Election Result"},"content":{"rendered":"
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Traders in Mumbai started the day with a shock as India began tallying votes from a seven-week election and it became clear that the government of Narendra Modi was not doing nearly as well as expected. By the end of trading on Tuesday, the markets were down 6 percent, nearly wiping out the year\u2019s gains.<\/p>\n

India\u2019s stock market had been on a tear, buoyed by economic growth and confidence that Mr. Modi, the most powerful prime minister in generations, was sure to secure a third term in office. Investors looking to India<\/a> yearn for political stability and many have done especially well during the first 10 years of Mr. Modi\u2019s pro-business leadership. Even after Tuesday\u2019s decline, the blue-chip Nifty 50 index has nearly tripled since Mr. Modi became prime minister.<\/p>\n

But the Indian market\u2019s main indexes have entered choppier waters on the way to the election. <\/p>\n

Some companies, namely those considered \u201cModi stocks,\u201d fared especially poorly as the election result came into view. The Adani Group\u2019s fortunes were always the most eye-catching. Gautam Adani rapidly became Asia\u2019s richest man, as his infrastructure-oriented businesses worked in harmony with Mr. Modi\u2019s plans for the country. That is, until a short-seller\u2019s report in early 2023<\/a> accused the Adani Group of market manipulation and accounting fraud.<\/p>\n

Adani\u2019s stocks crashed, but within a year, as it became clear that the Indian government and many of the world\u2019s biggest banks would be patient with the companies, they climbed back up. On Tuesday, Adani Enterprises, the group\u2019s flagship company, shed 19 percent of its value, putting it halfway between its peak and subsequent trough.<\/p>\n<\/div>\n