Experts predict that the election results would keep bond rates and the Indian currency volatile in the near future

The opposition alliance INDIA received 233 seats, while the BJP-led NDA received 293 seats. The BJP has not been able to secure the 272 majority on its own.

Experts predicted that the Lok Sabha election results, which did not provide any political party a clear majority, would likely keep bond rates and the Indian currency volatile in the near future.

The National Democratic Alliance (NDA), headed by the BJP, and the I.N.D.I., led by the Congress, were two external party coalitions they mentioned.A block lowers the mood of market participants and dealers.

According to Sakshi Gupta, an economist at HDFC Bank, "the election results are probably to keep both the rupee and bond yields volatile in the short run."

Furthermore, the RBI will ultimately launch a tactical intervention in response to any significant movement in the currency relative to its Asian emerging market counterparts, according to Madhavi Arora, Lead Economist at Emkay Global Financial Services.

The Indian rupee started the day slightly lower than yesterday, opening at 83.48 versus the US dollar as opposed to 83.53. It is now trading at 83.40 in relation to the US dollar.

The 10-year benchmark bond 7.10 percent 2034 began at 7.0297 percent today, after closing the previous day at 7.0382 percent. It is trading at 7.0354 percent right now.

Comparably, the former benchmark bond for the 10-year bond, the 7.18 percent 2033, started at 7.0998 percent today, compared to the closing of 7.1076 percent on June 4 and is now trading at 7.0908 percent.

Election outcomes

The website of the Election Commission of India (ECI) reports that the Bharatiya Janata Party (BJP) has secured 240 seats in the Lok Sabha elections. The Indian National Congress has secured 99 seats, while Samajwadi Party has secured 37 seats.

With 293 seats won, the BJP-led NDA defeated the opposition I.N.D.I.A. coalition with 233 seats. The BJP hasn't been able to secure the 272 percent majority on its own.

Since they control the balance in the BJP-led NDA, the two allies of the party, Chandrababu Naidu's TDP and Nitish Kumar's JD(U), are anticipated to be crucial in achieving a majority.

JD(U) has won 12 seats, while TDP has won 16.

Kumar is going to participate in the NDA meeting that is being held in the nation's capital on June 5. At around six o'clock in the evening, the I.N.D.I.A bloc will also assemble in Delhi.

The leader of the TDP, N Chandrababu Naidu, said earlier today that his party is a component of the NDA and that he would be present at the National Democratic Alliance conference in New Delhi.

The leader of the NDA-affiliated Janasena party, Pawan Kalyan, will also be present at the NDA conference in the nation's capital, which comes one day after the coalition won the Andhra Pradesh Assembly and Lok Sabha elections.

The degree of volatility on June 4

In afternoon trading on June 4, the Indian rupee declined and the yield on bonds increased as voting patterns indicated that the Congress party-led I.N.D.I.In the polls, an alliance is fighting the NDA side-by-side.

The Indian rupee opened at 83.25 versus the US dollar, but by 12:00 PM it had dropped 36 paise to 83.5075. The Indian rupee began trading about 10 paise lower than it had closed.

In a similar vein, the benchmark 10-year bond, the 7.10 percent 2034, which begun the trading day at 6.948 percent but finished at 6.944 percent, surged to 7.0564 percent at 12:00 PM.