New Delhi: BSE Sensex and Nifty 50, the Indian equity benchmark indices tanked in opening trade on Tuesday. The election commission began counting votes at 8 am and early trends show that BJP-led NDA will not win by a huge margin as predicted by the exit polls. BSE Sensex was trading at 70,476.07, down 1,722 points or 2.29%. Nifty50 was at 21,469.40, down 519 points or 2.23%.
After surging more than 3% on Monday, the BSE Sensex and Nifty50 reached record highs and closed at all-time highs as well. According to market analysts, the NDA led by PM Modi may not win by a significant margin, contrary to what the exit polls indicated, and the equity markets had not considered in this possibility.
The stock markets had not factored in the prospect of a complete sweep by the PM Modi-led NDA, therefore market analysts predict that the strong bull market surge will continue policy and bring about major reforms. Experts and brokers have identified what are referred to as “Modi stocks”—counterparties that are expected to benefit from the Modi administration’s possible comeback.
The market capitalization of all BSE-listed companies decreased by Rs 8.78 lakh crore, to Rs 417.13 lakh crore. Previous exit polls had predicted that Modi would win handily, and on Monday, investor confidence about continued economic growth sent markets to all-time highs. Modi’s Bharatiya Janata Party-led National Democratic Alliance (NDA) alliance took an early lead and currently has over 290 of the 543 seats in the lower house of parliament.
The Sensex has dropped over 5,000 points (more than 6.5%) and the Nifty50 has dropped over 1,600 points, suggesting that the carnage on Dalal Street is getting worse. As the results of the 2024 Lok Sabha election show that the race between the NDA and the INDIA alliance was closer than anticipated, investors are having to deal with increased volatility. This large recession has increased market anxiety, which has resulted in a lot of selling in a lot of different industries.
In the latest developments on the stock market, stocks typically associated with the term ‘Modi stocks’ experienced a significant downturn as early election results surpassed expectations for the opposition INDIA alliance.
The term ‘Modi stocks’ refers to companies that have historically benefited from the policies and initiatives of the Narendra Modi-led government. However, as the INDIA alliance gained traction in the election results, these stocks found themselves in deep red territory.
At 12:00 pm, REC shares fell 22.63% to Rs 467.75; Indian Bank declined 14.01% to Rs 521.70; SJVN tanked 12.96% to Rs 124.60; Power Finance Corporation fell over 23% to Rs 426.95; HUDCO fell 18.26% to Rs 234.60; BHEL tanked over 23% to Rs 237.25.
Dalal Street saw a sharp turnaround on the day of the Lok Sabha election results, with the Sensex and Nifty wiping out all of their gains from the previous session. The Nifty also saw a notable drop of more than 1,000 points during the trading session, as the Sensex fell to an intraday low of 72,337.34, losing more than 4,000 points.
