India polls: Indian rupee drops to all-time low against Omani rial

Oman Tuesday 04/June/2024 20:40 PM
By: Times News Service
India polls: Indian rupee drops to all-time low against Omani rial

Muscat: The Indian rupee is trading close to an all-time low of 216.70 to the Omani rial after the BJP government’s below par performance in polls. The PM Narendra Modi’s party fell short of exit poll predictions and the majority mark on its own, according to financial experts based in Oman.

R. Madhusoodanan, former SBI official and a financial expert, said, “The poll surveys had given higher numbers to the NDA, which led to the stock market rally and rupee appreciated against the previous close on Friday. But on Tuesday morning, when counting started, the results were not as per the expectations. Hence, the market reacted negatively and tumbled. Indian rupee also fell against US dollar and it touched INR83.55.

The exchange houses are offering 216.70 and the INR-dollar rate is expected to be range bound in the next few days and will settle depending on the formation of the new government.”

Indian Stock Market

Indian stock indices witnessed a bloodbath on the day the Indian Parliament results were announced.

The BJP-led National Democratic Alliance led in over 290 seats while the INDIA alliance led on 229 seats, as per data from the Election Commission of India.

The idea of a coalition government lead by the BJP at the centre led to widespread market anxiety and a sharp decline in stock indices.

The BJP, which has been the dominant force in Indian politics for the past decade, is seen as a pro-industry party whose policies have generally favoured economic growth and market stability. The failure to secure a clear majority to BJP of its own raises concerns about the formation of a stable government and the continuation of economic reforms.

At the closing bell, Sensex closed at 72,079.05 points, down 4,389.73 points or 5.74 per cent, while Nifty closed at 21,884.50 points, down 1,379.40 points or 5.93 per cent. All Nifty sectoral indices, barring Nifty FMCG, were deep in the red yesterday.