Modi’s disappointing election result jolts markets in Mumbai

India's election shocked markets: Prime Minister Narendra Modi is set to retain power, but his BJP party lost its majority for the first time in 10 years. The drop was especially pronounced because exit polls released the day before had shown a strong majority for the BJP was likely, enabling Modi to push through market-friendly policies.

With that agenda now in doubt, the benchmark Sensex index plunged 6% on June 4, as our chart shows – wiping out its gains for the year.

We've overlaid fund flows data from CEIC's new partnership with EPFR, tracking assets under management in India, which dropped on June 4 to USD 274bn from USD 280bn a day earlier.

We've also added a heat map – showing how June 4 marked the worst recent performance for almost all of the nation's stock sectors.

Finally, a chart tracking local metal prices showed that most declined in unison after the vote. While such commodities are obviously primarily exposed to global supply and demand, Modi's agenda included ambitious infrastructure spending that is now in doubt.

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