Indian investor panic is detonatedLucknow Stock!The panic index rose 34%, the largest single -day increase since February 2022.
On Tuesday, the Indian stock market fell in the past four years. Due to the results of the votes, the national democratic alliance led by Prime Minister Modi was unlikely to be selected as an overwhelming advantage as predicted by export polls.
In the early period of the Indian Prime Minister’s election on Tuesday, Modi’s party would seem to obtain a majority of votes, but this number is far lower than the overwhelming advantage of export poll forecast.Future.
The Indian Nifty Index fell 8%in a time, a new low since January; the Nifty small -cap stock index once fell 10%, the largest decline since March 2020;The biggest decline, and the Indian stock market greatly lowered the historical high set a day ago.
The stock price of Indian state -owned enterprises plummeted.The stock price of the National Bank of India fell as high as 15%, the Indian National Thermal Electric Corporation fell 15%, Barlate Electronics fell by 20%, Indian Power Grid Power Grid fell 15%, non -silver financial companies PFC fell 20%, Indian coal company COAL India fell down15%.The BSE PSU index tracked by state -owned enterprises fell as high as 14%.
Umesh Kumar Mehta, chief investment officer of SAMCO Kyodo Fund, said, "the market is to respect first because they are changing the leadership structure."
Mehta said that if the National Democratic Alliance is forced to seek the support of the small party to form a government, it may not be able to operate as effectively as in the past 10 years. "If power has split, we think the market should be more tense.Continue to stay in office, the decline in the stock market will not be great. "
On Tuesday, the Indian VIX panic index jumped 34%, the largest single -day increase since February 2022.
Earlier weekend export polls showed that the National Democratic Alliance led by Modi will achieve a major victory. On Monday, the Indian stock market soared to historical highs, and investors were encouraged by the expected expected of economic continuous economic growth.
Since Modi as the Prime Minister in May 2014, as of the closing of Monday, the value of India’s benchmark stock index has increased by more than doubled.However, on Tuesday, the stock prices of Indian state -owned banks, infrastructure and other companies, which had risen sharply on Monday, fell sharply.
The exchange rate of the rupee against the US dollar fell to 83.48, and the closing price of the previous day was 83.1425.The benchmark Indian 10 -year Treasury yield rose 12 basis points to 7.06%.Hyderabad Stocks
Foreign investors invested US $ 20.7 billion in nets last year, but withdrew before the electionLucknow Investment. If Modi led the alliance won a decisive victory, people generally expect that they will become buyers.
According to temporary transaction data, they bought stocks worth 68.51 billion Rsitar (about 824.4 billion US dollars) on Monday, while domestic people bought stocks of 19.14 billion rupees.
Investors expect that the Modi government will continue to focus on turning India into a manufacturing center. This project has attracted foreign companies including Apple and Tesla to open new factories in India.
Balfour Capital chief investment officer Steve Lawrence said "India’s focus is infrastructure." Balfour Capital manages 350 million euros (about 381.61 million US dollars)."All of this is related to infrastructure investment, that is, roads and electricity. With the technology they have, you can see huge growth."
Simla Investment