Muscat: Following the BJP government's disappointing performance in the polls, the Indian rupee is now trading near its all-time low of 216.70 to the Omani rial. Financial experts based in Oman have reported that Prime Minister Narendra Modi's party fell short of both exit poll predictions and the majority mark on its own.
According to R. Madhusoodanan, a former SBI official and financial expert, the poll surveys had initially projected higher numbers for the NDA, leading to a stock market rally and an appreciation of the rupee against the previous close on Friday. However, when the counting of votes began on Tuesday morning, the results did not meet expectations. As a result, the market reacted negatively and experienced a decline. The Indian rupee also weakened against the US dollar, reaching INR83.55.
Currently, exchange houses are offering a rate of 216.70, and it is anticipated that the INR-dollar rate will remain within a certain range in the coming days, ultimately settling based on the formation of the new government.
Indian Stock Market
The Indian stock market experienced a significant downturn following the announcement of the Indian Parliament election results.
The National Democratic Alliance, led by the BJP, secured over 290 seats, while the INDIA alliance led in 229 seats, according to data from the Election Commission of India.
The possibility of a coalition government led by the BJP caused widespread market concern and a sharp drop in stock indices.
The BJP, known for its pro-industry stance and policies favoring economic growth, has been a dominant political force in India for the past decade. However, the failure to secure a clear majority raises doubts about the formation of a stable government and the continuity of economic reforms.
At the end of the trading day, Sensex closed at 72,079.05 points, marking a decrease of 4,389.73 points or 5.74 percent, while Nifty closed at 21,884.50 points, down by 1,379.40 points or 5.93 percent. With the exception of Nifty FMCG, all Nifty sectoral indices showed significant losses.
