Unexpected Election Outcomes and Market Reactions

Exit polls rarely miss the mark entirely, but this election was an exception. The BJP fell short of an outright majority, yet its pre-poll alliances with the TDP and JDU likely ensured Narendra Modi's return as Prime Minister. Despite the Congress party's celebrations, they still haven't crossed the 100-seat mark in the Lok Sabha in the last three elections.

The Nifty saw a dramatic surge of over 1000 points following the exit polls, only to drop by 1300 points on results day. The TDP, led by Chandrababu Naidu, and the JDU, led by Nitish Kumar, have a history of political flip-flops and maneuvering.

With the dust now settled, the National Democratic Alliance, led by Narendra Modi, formed the government on June 9th. The stock markets responded positively, reaching new highs. Although portfolios still need finalizing, it’s clear that the key ministries—Finance, Home, Defence, and External Affairs—will remain with the BJP, ensuring policy continuity.

As the swearing-in ceremony was underway, India faced Pakistan in the Cricket T20 World Cup in New York. It was a thrilling match, delayed by rain, but India emerged victorious once again against Pakistan.