Indian stock markets witnessed a significant downturn on Tuesday following early election results that indicated a tighter race for the country's next prime minister than previously anticipated by exit polls conducted over the weekend.
Market analysts have expressed concerns that if the incumbent Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) performs below expectations in the elections, crucial economic reforms could be delayed or sidelined.
The benchmark Sensex index, which monitors the performance of 30 major companies, as well as the broader Nifty 50 index, both plummeted by nearly 5% in response to the unfolding political scenario.
This decline comes on the heels of a record high for Indian stocks just a day earlier, with experts projecting a decisive victory for Modi and the BJP.
During his campaign, the 73-year-old Prime Minister highlighted his administration's economic achievements over the past decade, a period marked by substantial growth for India. Modi has set ambitious goals for the country, including the target of transforming India into a $5 trillion economy by the end of the current decade.
