Sensex and Nifty tanked nearly 5% as counting of votes for the 2024 Lok Sabha Election is underway. Sensex opened flat in the morning as the results by the Election Commission was announced.
The BSE benchmark dived 4,131.44 points or 5.40% to 72,337.34, and the Nifty slumped 1,263.3 points or 5.43% to 22,000.60 after opening at 76,285.78, compared to the previous close of 76,468.78. The broader Nifty also declined 874.05 points, 3.75% to 22,389.85 in early morning trades. The 50-share index opened at 23,179.5, down 0.36%, or 84 points.
The latest trends show the INDIA bloc is giving a tough fight to the NDA, which is inching closer to the 300-mark. The Opposition alliance is leading in at least 227 seats, quite contrary to what the exit polls had predicted on June 1.
Today’s stock market crash has wiped off Rs 21.5 lakh crore wealth of the investors. The market capitalization of all listed companies on BSE decreased by Rs 21.5 lakh crore to reach Rs 404.42 lakh crore.
FMCG and healthcare stocks defied market downturn and gained up to 4%.
How Markets Reacted to Exit Polls?
On June 2, the markets reacted positively to the exit poll results that predicted NDA will cross 365 seats.
The Sensex rallied 2,000 points on Monday morning while Nifty recorded its biggest jump in four years during the market opening. Rs 12.48 lakh crore wealth was added to the market cap of BSE stocks.
Adani Ports, Adani Enterprises, Power Grid, Shriram Finance, and NTPC were among the top performers that led the market rally with significant gains. The latest GDP data suggesting a robust 8.2% fiscal growth also bolstered market sentiment.
The exit polls had predicted that BJP would break ground in Kerala and Tamil Nadu, and gain massively in Odisha and West Bengal.
How Markets Performed on Trends in Previous Lok Sabha Election Result Day?
May 13, 2004: The Sensex and Nifty rose by 0.77% and 0.37%, closing at 5,399.47 and 1,717.5 respectively. The Sensex reached an intraday high of 5,487.34 and a low of 5,131.03, while the Nifty’s intraday high was 1,750.30 and its low was 1,625.10. The UPA came to power.
May 16, 2009: The Sensex increased by 2.53% and the Nifty surged by 17.74%, closing at 12,173.42 and 4,323.15 respectively. The Sensex hit an intraday high of 14,284.21 and a low of 13,479.39. The Nifty’s intraday high was 4,384.30, and its low was 3,673.15. UPA-II came to power with Manmohan Singh as Prime Minister.
May 16, 2014: The Sensex and Nifty rose by 0.90% and 1.12%, closing at 24,121.74 and 7,203 respectively. The Sensex’s intraday high was 25,375.63, and its low was 23,873.16, while the Nifty’s intraday high was 7,563.50, and its low was 7,130.65. BJP came to power with Narendra Modi as Prime Minister.
May 23, 2019: The Sensex and Nifty saw slight declines of 0.76% and 0.69%, closing at 38,811.39 and 11,657.05 respectively. The Sensex reached an intraday high of 40,124.96 and a low of 38,651.61. The Nifty’s intraday high was 12,041.15, and its low was 11,614.5. BJP won the second term with Modi as Prime Minister.