Indian billionaires, including Gautam Adani and Mukesh Ambani, saw their fortunes decline on Tuesday as India’s stock markets plummeted in the wake of election results suggesting a narrow victory for Prime Minister Narendra Modi’s alliance. With the BJP leading in 243 of the 543 seats contested, falling short of the majority mark of 272, Modi may need support from his coalition partners to form a government. The Bombay Stock Exchange’s Sensex Index dropped nearly 6%, a sharp contrast to the surge seen on Monday following exit polls projecting a landslide win for Modi.
Gautam Adani, Asia’s richest person, experienced a significant drop in his wealth, falling from nearly $100 billion to $79.2 billion as his conglomerate’s publicly listed companies were hit by the market selloff. Adani Enterprises, Adani Power, Adani Green Energy, and Adani Ports all saw declines ranging from 19-22%. Mukesh Ambani, Asia’s richest person, also saw his net worth decrease by $2.6 billion to $106.9 billion. The Adani Group’s listed companies dropped by $45 billion in market value, contributing to the overall $386 billion loss in the Indian stock market.
Other Indian billionaires affected by the market downturn include Savitri Jindal, chair of the Jindal Group, whose net worth fell by $2.1 billion to $35.5 billion, and Kumar Mangalam Birla, chair of the Aditya Birla Group, who experienced an $839 million decline to $21.1 billion. The exit polls had predicted a massive win for Modi and the BJP coalition, but the actual results fell short of expectations, with the opposition INDIA coalition leading in 231 seats, up from 94 in 2019.
Surprisingly, Modi and his deputy Amit Shah had appeared in televised interviews prior to the results, predicting a record-breaking bull run in the markets on June 4. Shah had even advised people to invest in stocks ahead of the results, anticipating a significant surge. The BJP’s coalition partners Nitish Kumar and N Chandrababu Naidu are being closely watched as potential allies for the opposition coalition, which could affect Modi’s ability to form a government. A final tally of results is expected to be released, but experts believe a major shift is unlikely.
The contrast between the exit polls’ predictions and the actual election results has had a significant impact on India’s stock market and the fortunes of its billionaires. The unexpected outcomes have led to market uncertainty and fluctuations, affecting the wealth of top business tycoons like Adani and Ambani. The political landscape in India is undergoing a shift as the ruling coalition faces a challenge in forming a government, potentially leading to changes in alliances among key political players. Investors and analysts are closely monitoring the situation as the country navigates through the post-election period towards stability and potential policy changes.
