In a dramatic turn of events, the Indian stock market witnessed a severe downturn on Tuesday, with both the Sensex and Nifty taking a massive hit amidst election uncertainties. The Sensex, India’s benchmark index, experienced a steep decline of 6,234.35 points, marking an 8.15% drop, while the Nifty, another key index, plunged by 1,982.45 points or 8.52%.
Key companies suffer significant losses
Several prominent companies bore the brunt of the market turmoil, with State Bank of India witnessing a staggering decline of over 16%, along with notable drops for Power Grid, NTPC, Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries.
Election trends spark market jitters
Early trends from the Lok Sabha election results painted a bleak picture for the BJP-led NDA alliance, particularly in its strongholds of Uttar Pradesh, Haryana, and Rajasthan. Despite initial predictions, the NDA is now anticipated to secure around 290 seats, causing unease among investors.
Global factors add to market volatility
Foreign Institutional Investors (FIIs) injected Rs 6,850.76 crore into Indian equities on Monday, but global markets remained unsettled. Asian markets, including Seoul, Tokyo, and Shanghai, traded lower, while Hong Kong experienced marginal gains. In the US, markets ended on a mixed note.
Rollercoaster ride continues after exit poll optimism
The market’s rollercoaster ride followed Monday’s optimism fueled by exit poll projections favoring a significant victory for the BJP-led NDA. The Sensex had soared by 3.39% to reach a new closing peak of 76,468.78, while the Nifty climbed by 3.25% to settle at 23,263.90. However, Tuesday’s abrupt downturn erased these gains, leaving investors grappling with uncertainty.
NDA leads, but victory uncertain
As per early trends, the NDA is leading in 288 seats, while the opposition INDIA bloc is ahead in 213 seats, creating uncertainty about the extent of the NDA’s victory.
Major market laggards
Among the biggest laggards in the 30-company Sensex were State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC, and HDFC Bank. In contrast, Sun Pharma and Nestle emerged as the only gainers.
Major losers and gainers
Among Sensex constituents, Larsen & Toubro, Power Grid, NTPC, State Bank of India, Reliance Industries, and HDFC Bank were the biggest laggards. Sun Pharma and Nestle were the only gainers.
Previous session recap
Markets surged on Monday following exit polls predicting a significant win for the BJP-led NDA. The BSE benchmark soared by 2,507.47 points (3.39%) to a new closing peak of 76,468.78, marking its largest single-day gain in three years. The NSE Nifty climbed 733.20 points (3.25%) to finish at 23,263.90.
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