Election Chaos!

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India’s stock market took its worst tumble in four years after Indian Prime Minister Narendra Modi’s BJP lost its parliamentary majority in a surprise outcome.

This result means that Modi will need to rely on smaller parties to form a governing majority in the Lok Sabha, the lower house of India’s parliament, raising uncertainty about the Indian leader’s ability to pursue his pro-business agenda.

Surprise election results in Mexico and South Africa also shook markets over the last week. Should investors worry about the effect elections can have on markets?

Manoj Pradhan on Twitter: https://x.com/ManojPradhanTHM

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