By Kenan Machado @kenanwsj 
India’s stocks and currency swung sharply in the first hour of trading, taking attention from strong bank-fueled gains in Japan and Australia and the start of bitcoin trading on the world’s largest futures exchange .
The rupee briefly hit a three-month low versus the dollar and the Sensex stock benchmark in India fell as much as 2.6% as some reports hinted that Prime Minister Narendra Modi’s party may have fallen short in two state elections.
The latest results on India’s election commission website, however, pointed to a lead for Mr. Modi’s Bharatiya Janata Party in both states. The fact that the agency typically updates data with a lag doesn’t help to calm market nerves. But Indian media are now reporting the BJP has won the regional election in Gujarat state.
“It was certainly a wild ride there for a little bit,” said Stephen Innes, head of Asian trading at Oanda. “The initial read was wrong, with news pointing to too tight of an election. That spooked the market initially.”
A loss for the BJP could risk reining in Mr. Modi’s reforms, which have been unpopular at times, said the head of treasury operations at an Indian bank in Hong Kong.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.