Financial industry news on June 4 yesterday has a record high yesterday. Today, it encountered a historical level. The shocking reversal of the Indian stock market caught off guard.The election -like election of the Indian election made India accidentally encounter three kills in the stock market, foreign exchange market, and bond market.Mumbai Wealth Management

This afternoon, the Indian Nifty Index and the Indian Sensex index fell more than 8%for a time, a step away from melting.Among them, the National Bank of India plummeted 17%, the largest decline since October 2008.Adani Ports, a company of India, has expanded to 25%, the largest decline since February 2023.In addition, the Indian National Thermal Electric Corporation fell 15%, Barlate Electronics fell 20%, India's Power Grid fell 15%, non -silver financial companies PFC fell 20%, and Indian coal COAL India fell 15%.The BSE PSU index tracked by state -owned enterprises fell as high as 14%.

Wind data shows that the Indian VIX panic index once skyrocketed 42%, the largest increase since November 2020.

In addition, the Indian bond market and the foreign exchange market also fluctuated significantly, and the Indian rupee/US dollar fell sharplyGuoabong Stock. The exchange rate of $ 1 against the Indian rupee jumped from 83.07 to 83.5 in the morning.India's ten -year Treasury bond yield also jumped more than 10 base points and stood on the 7%mark.

The export poll last weekend showed that the current Indian People's Party's ruling alliance led by the Indian Prime Minister Modi will get up to two -thirds of the seats in the House of Representatives, occupying an absolute majority, enough to start the amendment to the Constitution, and Modi himself also himself.The term of the third prime minister will be won.Encouraged by the continuity of economic policy and continuing to the business environment, investors have recently increased the Indian market.The Indian Nifty Index touched the historical high at 23338.7 at the opening of the market on Monday, and closed up 3.25%.

On June 1, local time, the voting stage of the Election of the Indian People's Court in 2024 came to an end.Export polls show that the National Democratic Alliance, led by the Indian People's Party (Indian Party), will win a majority of seats. The current Prime Minister Narendra Modi is expected to be re -elected to start the third term.The export polls of the major TV news channels of India and many civil transfer agencies show that the National Democratic Alliance leads the Indian National Development tolerance Alliance led by the Indian National Congress (National Party).More than 350 seats are far exceeding half of the seats.

Indian election election roller coasterUdabur Stock

But the problem is exactly the market expectation is too strong.

The votes starting this morning are much different from expected.The early data of the Election Commission shows that although the Indian People's Party is still expected to win, most of the seats they have obtained will be much less than in 2019.The Indian People's Party and its allies are still expected to win most of the seats in the 543 seats of the parliament, although it seems that they are unlikely that they have tied the 351 seats they won in 2019, or have achieved Modi's ambitious 400 seat targets.

The leader of the National Congress of the National Congress Lahul Gandhi led about 200,000 votes in the Wayanad constituency in Karara, at the same time campaign in the Rabareli area of ​​North Fangbang in the constituency.In 2019, he won this seat with the advantages of more than 400,000 votes, but his traditional base in North Fangzang lost to the Indian People's Party's Smridi Ilanni (Ilanni this timeIt seems to lose this seat).

The Indian Parliament implements the two institutions, which are divided into the Federal Institute (Parliament's upper house) and the People's Court (the lower house of the parliament).The People's Court election is held every 5 years, and the political party or party alliance that has won a majority of seats in the people's hospital elections has the right to form the cabinet.The election vote of the People's Court began on April 19 and was divided into 7 stages. The results will be announced on Tuesday.The competition of this year's Indian election is mainly between the National Democratic Alliance led by the Indian National Democratic Alliance and the Indian National Development tolerance Alliance led by the Indian National Congress.

Why is the stock market reaction so much?

For the Indian stock market, the league led by Modi is far lower than expected, which will trigger questioning the next government's ability to promote the reform of land and labor law.Many investors believe that further reform is an important foundation for India to maintain high -speed economic growth.Because of this, stocks that are highly associated with the government's economic development goals, or "Modi Concept Stocks," took the lead.

Sameer Kalra, the founder of Target Investing, said that the market value of the Indian market accounts for 140%of GDP. If there is some uncertainty in the future policy, major adjustments may occur.Kanpur Investment

Foreign capital continues to flow out of the Indian stock market

Earlier, the research report issued by UBS stated that the phenomenon of "drumming flowers and flowers" in the Indian stock market was: on the one hand, foreign investment was sold, and the other side was the innovation of domestic retail investors.According to UBS's analysis of the capital flow data flow of India's stock market in the first quarter of this year, Indian retail investors in the first quarter of this year have reached 16.4 billion U.S. dollars through direct purchase of stocks and regular investment plans (SIP), approaching the highest point in recent years.The net outflow of foreign capital reached about 9.1 billion US dollars in the first quarter.

The situation of foreign -funded net outflow was not eased in May.Preliminary data from the National Stock Exchange of India show that foreign capital flows in May in May (about 2.4 trillion Indian rupees), the largest outflow of foreign capital since January 2024.Indian domestic capital continued to buy $ 23.1 billion in May.