Top Indian equity indices are in a tailspin today as the world’s largest democracy digests the results of the 2024 election. While votes are still being counted, the available data so far points to a narrower-than-expected victory margin for the ruling party alliance. Consequently, Indian stocks are experiencing their worst decline in four years, with the NIFTY 50 (NSE:NIFTY) index dropping by around 5.45% and the SENSEX (BOM:SENSEX) tanking by roughly 5.11% today.
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What the Data Suggests
Earlier, exit polls indicated a sweeping victory for the BJP (Bharatiya Janata Party) led alliance. However, the current vote count suggests the alliance winning roughly 290 seats, lower than its tally of 353 seats four years ago. The elections include 543 seats in the Indian Parliament’s lower house, and a party needs at least 272 seats to form a government.
And Its Impact on Top Indian Stocks
Indian markets have been favored by global investors in recent times amid economic and geopolitical tensions in other parts of the world. However, the surprise election outcome is weighing heavily on investor sentiment today.
Importantly, today’s sharp decline comes on the heels of Indian equity benchmarks hitting record highs yesterday. As a result, top Indian names listed in the U.S., including Infosys (NYSE:INFY), MakeMyTrip (NASDAQ:MMYT), and Dr. Reddy’s (NYSE:RDY) are ticking lower today. Additionally, shares of HDFC Bank (NYSE:HDB) and ICICI Bank (NYSE:IBN), two of the largest banks in India, are down by nearly 8% and 10% respectively.
Which Indian Stock Is Best to Buy?
The next trajectory for these names could be decided by the business policies in the country over the coming periods. Meanwhile, the TipRanks Stock Comparison tool points to the highest potential upside of 29% in HDFC stock, based on a Strong Buy consensus rating and a $79 average price target.
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