In early trade on Tuesday, benchmark equity indices Sensex and Nifty experienced significant declines due to heavy profit-taking following a substantial rally in the previous session. The initial vote counting for the Lok Sabha polls showed mixed trends, leading to market volatility. The BSE Sensex fell by 1,715.78 points to 74,753, while the NSE Nifty dropped 539.1 points to 22,724.80. The decline deepened later, with the Sensex plummeting 2,623.91 points to 73,844.36 and the Nifty falling 617.45 points to 22,646.45. Major laggards included Larsen & Toubro, Power Grid, NTPC, State Bank of India, Reliance Industries, and HDFC Bank, while Sun Pharma and Nestle were the only gainers.
The BJP-led NDA appeared confident as exit polls predicted a significant victory, with trends showing leads in over 200 parliamentary seats out of 350. However, the opposition INDIA bloc remained hopeful, dismissing the exit poll results. Concurrently, the Indian rupee opened weaker at 83.23 against the US dollar, compared to Monday’s close of 83.14. In Asian markets, Seoul, Tokyo, and Shanghai were trading lower, while Hong Kong saw gains. US markets had ended on a mixed note on Monday. Additionally, the global oil benchmark Brent crude declined by 0.68 percent to USD 77.83 a barrel.
On Monday, the markets reacted positively to exit polls predicting a third term for PM Modi, with the Sensex and Nifty surging more than 3 percent, marking their biggest single-day gain in three years and closing at lifetime highs. The BSE Sensex soared by 2,507.47 points to close at a new peak of 76,468.78 points, while the NSE Nifty rose by 733.20 points to settle at 23,263.90. The market capitalization of BSE-listed companies jumped to Rs 4,25,91,511.54 crore, and NSE-listed companies reached Rs 422.48 lakh crore. Historical data from previous election result days, including significant gains in 2009 and notable fluctuations in other years, highlights the market’s responsiveness to election outcomes.
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