India is undergoing elections and its stock market Sensex and Nifty remain on a slippery slope as the results will be announced on June 4, 2024. Narendra Modi is looking to win a third term and needs his party, the BJP to cross the 272 majority mark to form the government. While many political pundits predict that he would comfortably cross the 300-seat mark, others claim he might fall short.
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Therefore, India’s stock market remains jittery as the counting of votes will go live next week which will determine if Modi will continue being Prime Minister of the country. However, the Chairman of Rockefeller International Ruchir Sharma opined that if the BJP falls short of reaching the majority numbers, India’s stock market could crash 15-20%.
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A Sharp 20% Correction in India’s Stock Market if Modi Fails To Win Majority Seats
There’s immense pressure on India’s stock market on the heels of the election and counting date that’ll determine Modi’s fate. Ruchir said that if the BJP wins 250 seats falling short of the majority, Sensex and Nifty could crash 15-20%.
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The Rockefeller Chairman also said that foreign investors are staying away from India’s stock market due to election turbulence. “It is also why foreign investors are being skittish about coming in. The on-ground environment still needs to be greatly improved for foreign direct investment. We are attracting FDI as a share of the economy at over 1 percent of GDP,” he observed.
Modi is hailed across the country for bringing India to a $3.87 trillion economy outperforming the United Kingdom. However, the poorer section of the country isn’t happy as they’re wages don’t reflect India’s growth. Several sections have complained that the rise in GDP is only on paper but the condition of living remains worse. In conclusion, the direction of India’s stock market will be determined on the day of the election results.