Indian Prime Minister Narendra Modi's party and its allies were set to return to power in the nation's richest state, television channels reported on Saturday, a boost for the Hindu-nationalist leader after a disappointing general election.

Historically downtrends often culminate in panic days and the Adani-triggered selloff appears to have marked such a turning point, an analyst said.

Prime Minister Narendra Modi’s ruling alliance is leading in polls in Maharashtra by a wide margin, signaling policy continuity in a state which houses most of India’s billionaires and is home to some of the country’s biggest investments.