Investing.com – Indian shares fell sharply from record highs on Tuesday, giving up much of their gains from the previous session, as early vote counts in the closely watched 2024 general election handed the BJP a less landslide victory than expected.
The index fell 3.8% to 22,400, retreating from a record high of more than 23,000 hit on Monday. By 9:31 IST (00:01 GMT), the index fell 1.8% to 75,133.82 points.
Both indices rose over 3% on Monday after exit polls released over the weekend showed a landslide victory for the BJP-led NDA alliance in the 2024 elections. This scenario also assumes a rare third term for Prime Minister Narendra Modi.
The counting of votes began on Tuesday morning. Preliminary data from the Election Commission showed the BJP expected to win, but with a much smaller majority than in 2019.
As of 9:27 am IST (0357 GMT), the provisional count showed that of the 311 constituencies that had declared votes, the BJP appeared poised to win 153 seats in India’s Lower House, while the Indian National Congress, the main opposition party, was expected to win 61 seats.
The BJP’s narrower victory represents a tougher path for the party to carry out its planned economic reforms, which include increased spending on infrastructure and manufacturing.
Investors have so far welcomed the BJP’s pro-business policies over the past decade, although the party’s rhetoric towards some minorities in India has drawn sharp criticism.