Good Morning! It is all about elections this week and it ain’t over yet, with today:

• India’s surprise election results

• How Bill Ackman’s hedge fund is leveraging its Twitter fans

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Have a good one!

X Nils

INDIA
No heatwaves, but shockwaves in India after election blow for Modi

What Happened?
The largest democracy in the world went to the polls this week. And while everyone expected a landslide victory for the sitting Prime Minister, it seems that his party, the BJP will lose the majority of the lower chamber of the Indian Congress and will need to rely on allies to form a government. The loss came as a shock, as many expected (and the poll before the election also showed) that Modi would remain his majority.

The stock market responded poorly on the election news, with the index of India down by 6%. Main reasons for the downturn is that analyst expect that it will be harder for Modi and his party, the BJP, to implement economic policy.

Why it Matters
The election results will come as a significant blow for Modi, as he dominated the political landscape for the past decade. Modi had set his sights high for his third term, aiming to make India the world's third-largest economy. However, his inability to generate enough jobs for the vast numbers of young people joining the workforce over the past few years may have played a role in the decline of his previously unshakable political backing.

The stock market felt the shock waves of the election outcome, with companies linked to Gautam Adani, a billionaire closely associated with Modi, taking a particularly hard hit. Adani's flagship firms, Adani Enterprises and Adani Ports, saw their shares plunge by 19% and 21%, respectively, making them the biggest losers on the Nifty 50 index. The benchmark index itself suffered a sharp reversal of fortune, closing 6% down on Tuesday after having soared to a record high just a day earlier on the back of exit polls that had pointed to a resounding victory for Modi.

What’s Next
Modi and the BJP need to come to terms with the election result and create a new strategy on how they will move forward with the economic agenda. As said, they have big plans for India and as the stock market reactions showed, companies are relying on the economic growth of India the next years. However, one can expect that support for his plans by other parties won't come cheap. We will see how the future will evolve for India and Modi.