The All India Market Capitalization index, tracked on the Bombay Stock index, lost over $370 billion on June 4 alone.
India's markets saw their largest one-day loss in four years after the electoral performance of Prime Minister Narendra Modi's ruling Bharatiya Janata Party fell short of expectations.
The losses on Tuesday meant the Sensex index erased all its gains this year in a single day, going from a 5.85% year-to-date gain on Monday to a 0.22% loss position. Meanwhile, the Nifty 50 saw its 7% year-to-date gain as of Monday drop to a meager 0.7% increase since the start of the year.The BJP-led National Democratic Alliance coalition, however, clinched 294 seats, managing to retain the parliamentary majority, crossing the 272 required to form the government.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.
However, a weaker mandate would make it more difficult to implement structural policy changes, such as land reforms to aid manufacturing growth and farm sector reforms to enhance agricultural productivity growth.
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