Post-Election Panic: Stock Market Dives on Lok Sabha Results

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STOCK MARKET COLLAPSE

The market showed a significant decline today, with the index dropping significantly, wiping out all the gains from Monday. This was due to exit polls indicating that the BJP-led alliance is likely to secure a two-thirds majority in the Lok Sabha election.

Today, after many rounds of counting in the 2024 Lok Sabha election, the BJP-led NDA was leading in 290 seats, while the Congress-led INDI Alliance was ahead in 230 seats.

As the margin between the NDA and INDI Alliance narrowed in the trends, the markets experienced a significant crash on 4th June during ongoing counting.

The Sensex started at 76,285.78 and dropped sharply to a low of 70,234.43 intraday as the gap between the NDA and INDI Alliance reduced compared to the 2019 elections. By the close, the Sensex stood at 72,079.05, down by 4,389.73 points or 5.74%.

The Nifty 50, which started lower at 23,179.50, hit a low of 21,281.45 during the day. By the close, the Nifty 50 stood at 21,884.50, down by 1,379.40 points or 5.93%.

All the sectors have faced losses in the market today. Bank stocks dropped by 7.8%, realty by 9.1%, infrastructure by 10.5%, oil and gas by 11.7%, and state-run companies and banks by 17% and 16% respectively.

Out of the 30 stocks on the BSE Sensex, only six, including Hindustan Unilever, Nestle India, TCS, HCLTech, Asian Paints, and Sun Pharma, ended in the red. NTPC, SBI, Larsen & Toubro, Power Grid Corp., and Tata Steel were the major decliners for the day.

On the Nifty 50 front, 13 out of the 50 stocks closed in the green. Top gainers included Hindustan Unilever, Britannia Industries, Nestle India, Hero MotoCorp, and Tata Consumer Products, while Adani Ports, Adani Enterprises, ONGC, NTPC, and Coal India were the main losers.

The BSE SmallCap ended 6.79% lower, and the BSE MidCap was down 8.07%.

Except for the FMCG index, which gained 0.95%, all other sectoral indices closed significantly lower. The PSU Bank index dropped over 15%, while the Oil & Gas index fell by 11.80%, followed by the Metal and Realty indices. The Bank and Financial Services indices also saw significant losses.