Benchmark stock indices fell on Tuesday, following a sharp rally in the previous session, as early vote-counting trends showed Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance leading in more than 272 seats, though the extent of the victory was unclear.
The S&P BSE Sensex dropped 2.57% to 74,504.52, while the Nifty50 slipped 2.23% to 22,744.85 as of 9:45 am.
This decline came after the benchmarks had surged over 3% on Monday, hitting record highs and recording their best session in nearly 40 months, driven by exit polls suggesting the BJP-led alliance might secure a two-thirds majority in the lower house.
A total of 272 seats is the minimum needed for a simple majority in the 543-member lower house of parliament. The sharp movements in the market reflect investor reactions to the political developments and the uncertainty surrounding the final election results.