India's Stock Markets Suffer Largest One-Day Loss in Four Years Amid Political Uncertainty After Modi's BJP Falls Short of Majority

New Delhi, Delhi India
All India Market Capitalization index lost over $371 billion (31.06 trillion rupees)
BJP fell short of expectations in elections, losing single-party majority for the first time since 2014
India's stock markets suffered largest one-day loss in about 4 years on June 4, 2023
Nifty 50 plunged 5.93% and BSE Sensex lost 5.74%
Opposition Indian National Congress gained 233 seats and NDA coalition managed to retain parliamentary majority with 294 seats
Political shift could introduce uncertainty into policymaking in India and lead to policy paralysis
India's Stock Markets Suffer Largest One-Day Loss in Four Years Amid Political Uncertainty After Modi's BJP Falls Short of Majority

India's stock markets experienced their worst one-day loss in about four years on June 4, 2023, as the electoral performance of Prime Minister Narendra Modi's ruling Bharatiya Janata Party fell short of expectations.

The Nifty 50 plunged 5.93%, while the BSE Sensex lost 5.74%, marking their largest loss since 2020.

The All India Market Capitalization index, tracked on the Bombay Stock index, lost over $371 billion (31.06 trillion rupees) in a single day.

Despite securing a rare third term in power with 240 seats in the lower house parliament, Modi's BJP lost its single-party majority for the first time since 2014, making it more difficult to implement structural policy changes such as land reforms and farm sector reforms.

The opposition Indian National Congress garnered 233 seats in the election, a much better result than predicted. The NDA coalition managed to retain parliamentary majority with 294 seats.

Analysts suggest that this political shift could introduce uncertainty into policymaking in India and may lead to policy paralysis and uncertainty in the government's functioning.

The losses on Tuesday meant the Sensex index erased all its gains this year, going from a 5.85% year-to-date gain on Monday to a 0.22% loss position.

On Wednesday, after the election results were announced, both the Nifty and Sensex rebounded slightly with gains of 0.7% and 0.26%, respectively.


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Confidence

90%

Doubts
  • Are there any other factors contributing to the stock market losses aside from political uncertainty?
  • Is the loss of $371 billion an accurate figure?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Modi's shock election hits India ETFs

Fox Business Network Wednesday, 05 June 2024 20:02
  • Unique Points
    • Indian Prime Minister Narendra Modi is expected to retain power in the 2024 election, but his Hindu nationalist Bharatiya Janata Party (BJP) lost its outright majority for the first time in a decade.
    • Modi's dependence on at least three regional parties could introduce uncertainty into policymaking in India.
    • ETFs tracking India’s stock market fell amid the political shift, with iShares MSCI India ETF seeing the largest percent decrease since December 2021.
  • Accuracy
    • Modi won a majority on his own in 2014 and repeated the feat in 2019.
    • Modi promised to focus on electronics, semiconductors and defense manufacturing, renewables and the farm sectors in his third term.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

India's stock markets erase $371 billion after ruling BJP falls short of election expectations

CNBC News Lim Hui Wednesday, 05 June 2024 02:35
  • Unique Points
    • India's markets experienced their worst one-day loss in about four years on June 4, 2023.
    • The All India Market Capitalization index dropped over $371 billion (31.06 trillion rupees).
    • Modi’s ruling Bharatiya Janata Party fell short of expectations in the elections, securing only 240 seats in the lower house parliament.
  • Accuracy
    • Modi’s ruling Bharatiya Janata Party fell short of expectations in the elections.
    • Prime Minister Narendra Modi is set to secure a third term but will have a reduced majority and need to manage coalition partners.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some inflammatory rhetoric and an appeal to authority, but no formal or blatant logical fallacies were found. The author expresses the magnitude of the stock market losses using strong language ('worst one-day loss in about four years', 'largest loss since 2020'), which can be considered inflammatory rhetoric. Additionally, there is an appeal to authority when Goldman Sachs analysts' opinions are quoted regarding macro stability and policy changes.
    • India’s markets saw their worst one-day loss in about four years as the electoral performance of Prime Minister Narendra Modi’s ruling Bharatiya Janata Party fell short of expectations.
    • The opposition Indian National Developmental Inclusive Alliance coalition, or INDIA, which is led by the Indian National Congress, garnered 233 seats – a much better result than was predicted.
    • We think the government will stick to their announced fiscal consolidation path of 5.1% of GDP in this fiscal year, though we expect some spending re-allocation towards welfare.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

87%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

India’s Stock Market Tumbles on Close-Run Election Result

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Alex Travelli Tuesday, 04 June 2024 13:18
  • Unique Points
    • Narendra Modi's party fell short of expectations in the Indian election
    • India's stock market had a bull run until the election results came in
    • Some companies, particularly those considered ‘Modi stocks’, performed poorly as the election result came into view
    • Adani Group’s flagship company, Adani Enterprises, shed 19 percent of its value on Tuesday
  • Accuracy
    • Narendra Modi’s party fell short of expectations in the Indian election
    • India’s stock market had a bull run until the election results came in
    • The markets were down 6 percent on Tuesday, nearly wiping out the year’s gains
  • Deception (70%)
    The article contains selective reporting as it only mentions the negative impact of the election result on the Indian stock market and certain companies, while omitting any mention of potential positive outcomes or other factors that may have contributed to the market decline. The author also makes editorializing statements such as 'A bull run came to an abrupt end' and 'the markets were down 6 percent, nearly wiping out the year’s gains', which are not objective facts but rather interpretations of the data.
    • A bull run came to an abrupt end
    • The markets were down 6 percent, nearly wiping out the year’s gains
  • Fallacies (95%)
    The article contains an appeal to authority fallacy when Chris Wood's prediction is presented as a certainty. The author states 'If Mr. Modi were suddenly defeated, I would expect a 25 percent correction if not more.' This statement implies that the author believes Chris Wood's prediction is accurate and reliable without providing any evidence or context to support this assumption.
    • 'If Mr. Modi were suddenly defeated, I would expect a 25 percent correction if not more.'
  • Bias (95%)
    The author expresses a clear bias towards the performance of Narendra Modi's government in relation to the Indian stock market. The author repeatedly mentions that investors 'yearn for political stability' and have done well during Modi's tenure, implying a positive view of his leadership. Additionally, the author describes Adani Group as 'Asia's richest man' and highlights their success under Modi's plans for the country. However, when discussing Adani Group's recent decline in value due to allegations of market manipulation and accounting fraud, the author does not express any bias towards these claims or their impact on the stock market.
    • Gautam Adani rapidly became Asia’s richest man, as his infrastructure-oriented businesses worked in harmony with Mr. Modi’s plans for the country.
      • Investors looking to India yearn for political stability and many have done especially well during the first 10 years of Mr. Modi’s pro-business leadership.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      90%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Indian stocks have worst day in 4 years as Modi’s hopes of a huge majority fade

      CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Diksha Madhok Tuesday, 04 June 2024 11:18
      • Unique Points
        • Indian stocks had their worst day in 4 years on Tuesday, with the benchmark Sensex and Nifty 50 indices each closing down nearly 6%.
        • Prime Minister Narendra Modi’s dream of a landslide victory in India’s election is at risk, raising doubts about his ability to push through economic reforms.
        • The Bharatiya Janata Party (BJP) was aiming for a supermajority in the 543-seat lower house of parliament but preliminary results show the opposition Congress party performing better than expected.
        • A party or coalition needs 272 seats to form a government in India, and if Modi underperforms in the polls, key economic reforms may be put on hold.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (50%)
        The article makes editorializing statements and uses sensationalism to grab the reader's attention. The author states 'Indian stocks have worst day in 4 years as Modi’s hopes of a huge majority fade', which is an exaggeration and sensationalized statement. The author also quotes experts making opinions about the potential impact of election results on economic reforms, but does not provide any evidence or facts to support these statements.
        • This will lead to dependence on allies in making key policy decisions… which will lead to policy paralysis and uncertainty in the government’s functioning.
        • Indian stocks have worst day in 4 years as Modi’s hopes of a huge majority fade
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication