Why was India's stock market down 6 percent?

By the end of trading on Tuesday, the markets were down 6 percent, nearly wiping out the year’s gains. India’s stock market had been on a tear, buoyed by economic growth and confidence that Mr. Modi, the most powerful prime minister in generations, was sure to secure a third term in office.

Why is India's stock market on a tear?

India’s stock market had been on a tear, buoyed by economic growth and confidence that Mr. Modi, the most powerful prime minister in generations, was sure to secure a third term in office. Investors looking to India yearn for political stability and many have done especially well during the first 10 years of Mr. Modi’s pro-business leadership.

Will a correction be welcomed in India's stock market?

Some degree of correction might be welcomed, at least among professional investors. A lot of the market’s recent growth has reflected the influx of small-time local investors buying stocks for the first time. With global investors clamoring for access to India’s long-term prospects, it had become nearly impossible to find bargains.