Stock Market Closing: Sensex Crashes 4,389 Pts, Settles At 72,000, Nifty Plunges 1,379 Pts

In the biggest single-day fall in four years, benchmark stock indices Sensex and Nifty plunged by nearly 6 per cent on Tuesday as counting trends showed the ruling BJP may fall short of a clear majority in the Lok Sabha elections.

Reversing its Monday’s sharp gains of over 3 per cent, the 30-share BSE Sensex nosedived 4,389.73 points or 5.74 per cent to close at a more than two-month low of 72,079.05. In the day trade, the barometer tanked 6,234.35 points or 8.15 per cent to hit a nearly five-month low level of 70,234.43.

The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45 during the day. Later, it ended at 21,884.50, a sharp decline of 1,379.40 points or 5.93 per cent. Sensex and Nifty had previously declined by around 13 per cent on March 23, 2020 when lockdown was imposed due to the COVID-19 pandemic.

On election result day, except for FMCG, all sectors experienced steep declines, with PSU Banks and the Energy sector particularly struggling.

Indian stocks opened with little enthusiasm. Panic selling dominated the morning session, causing widespread chaos. Though there was some rebound in mid-session, it proved short-lived as another wave of selling in the final session dragged the index down significantly, closing with a massive drop of 1379.40 points at 21,884.50.

Election Stocks to watch out according to Aditya Goela, CFA, Co-Founder of Goela School of Finance.

HDFC Bank: A leading private sector bank with a strong track record of steady growth and profitability.

Hindustan Unilever (HUL): A consumer goods company with a strong brand presence and consistent performance.

Tata Consultancy Services (TCS): A leading IT services company with a strong track record of steady growth and profitability.

Sun Pharma: A leading pharmaceutical company with a strong track record of steady growth and profitability.

Max Healthcare Institute: A leading healthcare company with a strong track record of steady growth and profitability.

Kotak Mahindra Bank: A leading private sector bank with a strong track record of steady growth and profitability.

Britannia: A consumer goods company with a strong brand presence and consistent performance.

Lupin Ltd.: A leading pharmaceutical company with a strong track record of steady growth and profitability

Sensex crashes 4,389.73 points to settle at 72,079.05; Nifty plunges 1,379.40 points to 21,884.50.

Rupak De, senior technical analyst at LKP Securities, said, “The index has fallen by about 5% due to a weaker trend for the NDA in the poll counting. The market, which had begun to price in a landslide victory for the NDA, is witnessing a significant correction due to margin calls, as retail investors were carrying heavily leveraged positions.”

“Support seems to be very fragile. Immediate support is visible at the psychological level of 22,000, below which the index might fall further towards 21,400-21,500. Recovery looks possible once the trend moves in favour of the BJP winning the election comfortably.”

Silver price on Tuesday marginally fell to Rs 92,025 per kilogram as participants reduced their bets.

On the Multi Commodity Exchange, silver contracts for July delivery marginally declined Rs 8 or 0.01 per cent to Rs 92,025 per kg in a business turnover of 24,465 lots.

Gold price on Tuesday rose Rs 120 to Rs 72,323 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.

On the Multi Commodity Exchange, gold contracts for August delivery traded higher Rs 120 or 0.17 per cent at Rs 72,323 per 10 grams in a business turnover of 16,781 lots.

Brokerage firm Nomura said market participants ought to wait for the election picture in India to become clearer.

Nathan Sribalasundaram, rates strategist, Nomura, said, “Vote count is clearly a disappointment for the markets, given the exit polls.”

Sribalasundaram added, “We need to wait for the final results to make a call on the longer-term impacts.”

Nilesh Shah, MD of Kotak Mahindra AMC, the correction in the market is because the actual general election 2024 results are way below what exit polls were indicating

“There could be some amount of derating if there is no political stability. Policy decisions will make a material impact,” he told CNBC-TV18.

“Investors are looking forward to the actual results. Markets had factored in the continuity of government and policy push towards accelerated growth. With this kind of result, people will wait on the margin to see what kind of formation happens,” he said.

Shares of all Adani Group companies tumbled on Tuesday as the initial trend showed BJP winning fewer seats than predicted in exit polls.

The stock of Adani Ports plummeted 20 per cent, Adani Energy Solutions plunged 19.80 per cent, Adani Power slumped 19.76 per cent, Ambuja Cements tumbled 19.20 per cent and the group’s flagship firm Adani Enterprises tanked 19.13 per cent on the BSE.

Adani Total Gas declined 18.55 per cent, Adani Green Energy dived 18.31 per cent, NDTV went lower by 15.65 per cent, ACC plunged 14.49 per cent and Adani Wilmar dropped 9.81 per cent.

Leaders: AB Cotspin India, Dabur India, Hindustan Unilever, Force India

Laggards: Vodafone Idea, Power Finance Corporation, REC, Adani Energy Solutions

BSE-listed companies have significantly declined market capitalisation, surpassing Rs. 40 lakh crore. This drop comes amidst the NDA-led government’s performance falling below expectations suggested by exit polls.

Among the 30 Sensex companies, State Bank of India tanked over 16 per cent, while Power Grid and NTPC plunged nearly 15 per cent. The 30-share BSE Sensex nosedived 6,234.35 points or 8.15 per cent to 70,234.43 in the afternoon trade. The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45.

Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries were the other big laggards.

Sensex fell sharply today, dropping by a maximum of 6,100 points. However, it partially recovered by around 1,500 points and currently trades 4,500 points lower.

The Nifty PSE indices slumped 1,221.55 points or 10.78 per cent to trade at 10,110.25, with the shares of Bharat Electronics Ltd (BEL), PFC, RECL, and Bharat Heavy Electricals dropping 15 per cent.

Shares of public sector lender State Bank of India (SBI) plunged 11.73 per cent to Rs 799.45 apiece.

Punjab National Bank and Bank of Baroda fell 10 per cent each to Rs 123.30 and Rs 267.25 apiece, respectively.

Shares of public sector enterprises and state-owned banks tumbled up to 15 per cent on Tuesday as benchmark equity indices plunged after the initial trend showed the BJP winning a lesser number of seats than predicted in exit polls.

BSE-listed companies erase market cap worth Rs 40 lakh crore