Stock Market Today: Nifty opens 1% lower on Tuesday, as Indian election results eyed

• India’s Nifty opened 1% lower on Tuesday, reversing from record highs.
• Early vote counting shows  PM Modi-led BJP alliance leading in 300 seats out of total 543.
• All eyes remain on India’s election outcome and the June 7 RBI policy decision.

Nifty 50, India’s key benchmark index, opened 1% lower on Tuesday, reversing Monday’s over 3% rally.

Markets are witnessing a ‘sell the fact’ trading in the Indian equity markets, as they highly anticipate a stronger return of the Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) alliance, now for the third straight term.

The National Stock Exchange (NSE) Nifty 50 is losing 1.41% on the day to trade below 23,000, having closed Monday at 23,263.

Stock market news

• Early gainers on Nifty are SunPharma and Nestle India. Meanwhile, the big losers in early trades on Nifty are Adani Enterprises, Adani Ports, Coal India, SBI Bank and ONGC.
• PM Modi-led BJP alliance leads in 300 seats out of total 543 in early vote counting trends, per local media outlets, cited by Reuters.
• Exit polls over the weekend predicted that PM Modi will retain power for a third straight term, with BJP-led NDA winning anywhere between 350-401 seats. 
• The Indian Rupee has faced rejection at the key resistance of 83.04 against the US Dollar, driving USD/INR back toward 83.50, as of writing, up 0.36% on the day.
• Markets are also weighing the US economic health prospects after weak ISM PMI data on Monday.
• ISM Manufacturing PMI index dropped from 49.2 in April to 48.7 in May, missing the expected 49.6 print. The ISM Manufacturing Prices Paid eased to 57.0 in May vs. 60.9 previous and 60.0 expected.
• Last week, India’s economy grew by 8.2% in the fiscal year ended March 2024, sharply higher than 7% expansion recorded in the previous year, led by a robust performance of manufacturing and construction sectors, per Reuters.
• All eyes remain on the results of the 2024 India’s general election due later on Tuesday and the Reserve Bank of India’s (RBI) monetary policy announcements on June 7 for fresh trading impulse.