Election shortfall of Narendra Modi's BJP leaves Wall Street scrambling

New York/IBNS: A major political setback for Narendra Modi's BJP has business executives in the country furiously making calls, trying to better understand the impact on India’s economy and investment landscape following Modi’s failure to secure a supermajority for his BJP in the lower house of the Parliament.

IBNS • 6 Jun 2024, 06:19 am

CNBC reported that AB Bernstein's managing director Venugopal Garre wrote to clients in an email: “Indian voters are great teachers. They have certainly surprised the politicians, exit pollsters and market watchers.”

Over the past several years, chief executives from some of the biggest US-headquartered companies have invested time and money into relationships with Indian Prime Minister Narendra Modi, as they set their sights on the South Asian nation's market.

Besides, some US-based companies, including GE Aerospace, Apple, Starbucks and Nvidia, have made high-profile deals to expand, manufacture and sell their products inside India.

Following the surprising election results, the Indian stocks market sold off on Tuesday (June 4), with the country's benchmark indices, S&P BSE Sensex and NSE Nifty, staging its biggest plunge in four years.

According to market experts, the outcome is a clear negative that is likely to create an overhang on the market over the near term.