India stocks steady after massive declines as investors digest election results; broader Asia markets mixed

Asia-Pacific markets were mixed on Wednesday, with stocks in India stabilizing after a heavy sell-off in the previous session as investors assessed India’s election results.

The Nifty 50 index edged 0.61% higher and the BSE Sensex added 0.75%.

The Nifty 50 plunged 5.93% on Tuesday, and the Sensex lost 5.74%, marking their sharpest fall since 2020 after Prime Minister Narendra Modi’s Bharatiya Janata Party fell short of an outright majority in the lower house of parliament.

The All India Market Capitalization index, tracked on the Bombay Stock index, lost over 31.06 trillion rupees, or about $371 billion on June 4.

Modi is still set for a third term in power after the BJP-led National Democratic Alliance secured 294 seats, more than the 272 needed for the coalition to form the government.

Elsewhere, first-quarter gross domestic product from Australia came in at 1.1% year-over-year, slightly below a Reuters poll expectation of 1.2%.

Australia’s S&P/ASX 200 edged 0.45% higher.

However, Japan’s Nikkei 225 dropped 1.07%, while the broader Topix shed 1.42%.

South Korea’s Kospi rose 1.13%, while the smaller-cap Kosdaq rose 0.45%.

Hong Kong’s Hang Seng index rose 0.33%, while mainland China’s CSI 300 index dipped 0.33%.

Overnight in the U.S., the Dow Jones Industrial Average rose as Wall Street sought its footing after an uneven start to the month.

The 30-stock Dow climbed 0.36%, while the S&P 500 added 0.15% and the Nasdaq Composite advanced 0.17% to 16,857.05.

Treasury yields were notably lower, with the rate on the benchmark 10-year note slipping about 7 basis points.

— CNBC’s Brian Evans and Jesse Pound contributed to this report.