Simla Investment：Election Verdict Impact! ICICI Bank, HDFC Bank, RIL ADRs plunge up to 11%

Indian ADRs or American Depository Receipts plunged on Tuesday dragged by ICICI Bank, HDFC Bank and Reliance Industries Ltd (RIL), which fell nearly 11%, 9% and 8%, respectively, around 7:30 pm.

The decline follows mayhem in the Indian markets where the benchmark indices S&P BSE Sensex and Nifty 50 settled with deep cutsSimla Investment. While the former closed at 72,079.05, falling by 4,390 points or 6%, the latter corrected by 1,379.40 points or 6% to close at 21,884.50.

Meanwhile, Prime Minister Narendra Modi tweeted from his X handle thanking people for giving the mandate in NDA’s favour for the third time.

“People have placed their faith in NDA, for a third consecutive time! This is a historical feat in India’s history. I bow to the Janata Janardan for this affection and assure them that we will continue the good work done in the last decade to keep fulfilling the aspirations of people. I also salute all our Karyakartas for their hard work. Words will never do justice to their exceptional efforts,” Modi tweeted.

ADRs of Wipro, MakeMyTrip, Yatra Online, Dr Reddy’s Laboratories were some of the other losers, which fell up to 3%.

ADRs are Indian companies listed on the New York Stock Exchange.

Commenting on Tuesday’s market action, Pradeep Gupta, Co-founder & Vice-chairman at Anand Rathi Group, said the markets saw heightened volatility due to the uncertainty surrounding the election outcomes mainly due to the gap between the exit polls and the actual results declared today.

“The pre-election rally witnessed yesterday, driven by expectations of a BJP victory, had already been factored into market prices. Till the question of the continuity of the current government was at an unsure position, the markets continued with heightened volatility in the short-term period,” Gupta said.

Fear index India VIX hit the day’s high of 31.71 before closing the day at 26.75Kolkata Wealth Management. The intraday jump was over 50%, which was the highest single-day jump in 9 years.Jaipur Investment

Citing historical data, Gupta said despite initial volatility, markets tend to recover and even thrive in the longer term. Investors are advised to focus on long-term strategies, such as maintaining a diversified portfolio and avoiding panic selling, he said, adding that strong fundamentals and resilience against political changes are crucial for navigating market volatility.

Kanpur Investment