Indian Markets Bounce Back Despite Modi's Narrow WinIndian Markets Bounce Back Despite Modi's Narrow Win

Indian equity markets regained ground on Wednesday after experiencing their worst session in over four years on the previous day. The recovery came despite Prime Minister Narendra Modi’s alliance securing a narrow victory in the recently concluded elections.

As of 9:15 a.m. IST, the NSE Nifty 50 index rose 0.7% to 22,032.65 points, while the S&P BSE Sensex climbed 0.7% to 72,582. The rebound followed a surprising election verdict that saw Modi’s Bharatiya Janata Party (BJP) losing its outright majority in parliament.

The benchmark indices had plunged nearly 6% each on Tuesday, reacting negatively to the BJP’s narrow win. The market’s initial response was a reflection of the unexpected outcome, as many had anticipated a more decisive victory for the incumbent alliance.

However, on Wednesday, investors seemed to have regained confidence, as evident from the positive momentum in the key indices. The market’s recovery suggests that concerns over the BJP’s diminished parliamentary strength may have been alleviated, at least in the short term.