Two of India's leading indices fell by about 8 per cent.
Investors are a bit nervous, and this will remain the case for the next few hours until management is ready, Fintrekk Capital Investment Director Amit Kumar Gupta tells Bloomberg News.
It has long been expected that current Prime Minister Narendra Modi will get his third consecutive term as head of government.
Vote counting began on Tuesday, and the narrow lead by Modi and his Bharatiya Janata Party led to sharp results in the stock market.
Two benchmark indices, Nifty 50 and Sensex, fell by around 8 per cent.
Companies associated with Gautam Adani, which according to Bloomberg Billionaire Index He is the richest man in Asia, and is leading the decline in the stock market, according to Bloomberg.
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It may become more difficult to manage
The initial vote count has raised doubts about whether the Modi-led coalition, with a weaker majority, will be able to implement important land and labor reforms.
The market is pricing in 400 seats for the BJP-led alliance, and that certainly does not seem to be happening now, Gupta told the news agency.
Monday was characterized by great optimism in Indian stock markets, and they recorded record high levels.
The fifth largest economy in the world
Under Modi, India has grown into the world's fifth-largest economy, and the country is also playing an increasing political role as a counterweight to China.
The Prime Minister has initiated several major investments in modern infrastructure projects such as roads, high-speed trains and airports. But economic growth has not benefited everyone.
Unemployment remains high, and poverty is widespread. Many struggle to provide the basic necessities of life.
India's per capita GDP is about $2,000 annually, according to the World Bank.
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