Performance metrics published by major Indian stock exchanges (e.g., Nifty 50 index)

Modi Poised for Historic Third Term as Early Results Show Narrower Victory, BJP Leads in 300 Seats

Jun 4, 2024, 11:33 AM

India's Prime Minister Narendra Modi is poised to secure a historic third term in office, as early vote counting trends show his Bharatiya Janata Party (BJP)-led alliance leading in the general election. Despite initial exit polls predicting a landslide victory, the early results indicate a narrower win, with the BJP likely to lose its outright majority in parliament. The BJP-led alliance is currently ahead in more than 300 seats of the 543-member lower house of parliament. This unexpected outcome has led to significant market reactions, with Indian stocks, bonds, and the rupee experiencing sharp declines. The Nifty 50 index tumbled 5.4%, and the market plunged over 2,000 points. Over 640 million votes are being processed, and the final results are expected within hours. Modi's coalition partners will play a crucial role in forming the next government, as the BJP falls short of the overwhelming majority anticipated.