Lok Sabha Election Results 2024: BSE-listed Companies Loses Rs 30 Lakh Crore Market Cap So Far

The 30-share BSE Sensex nosedived 6,234.35 points or 8.15 per cent to 70,234.43 in the afternoon trade. (Representative image)

BSE-listed companies have witnessed a market capitalisation decline exceeding Rs 30 lakh crore following indications that the NDA-led government may not meet the expectations set by exit polls.

Till the time of market closing, the NDA, under the leadership of PM Narendra Modi, held the lead on 295 seats, whereas the I.N.D.I.A alliance was leading on 232 seats.

Benchmark Sensex crashed 4,389.73 points to settle at 72,079.05 on Tuesday. Nifty plunged 1,379.40 points to finally settle at 21,884.50.

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.

Among the 30 Sensex companies, State Bank of India tanked over 16 per cent, while Power Grid and NTPC plunged nearly 15 per cent.

Nifty’s Massive Fall

Today marks the largest single-day decline for the Nifty since May 2020. The broader market is experiencing an even steeper drop, with both the Nifty Midcap and the Nifty Smallcap indices plummeting over 8% in today’s session.

The India VIX surged by 23% as the market maintained its extreme volatility. This follows a 15% decline in the VIX on Monday, following the release of the exit poll results, CNBC-TV18 reported.

Every sectoral index closed in the red. The Nifty Bank index plummeted by 8%, the Auto index declined by 3.3%.

The Nifty Metal index experienced a sharp 10% downturn, while the PSU Bank index is undergoing its most significant decline since 2021, plunging by 15%.

The Nifty Realty index witnessed a 10% decline, and the Oil & Gas index saw an 11.8% drop by the end of the trading session.

The PSE index, representing state-run companies, which had surged by 85% in 2023 and 45% so far this year, experienced a 15% decline. Nearly all PSU stocks recorded losses ranging between 10% to 20%.

Correction In The Market

Nilesh Shah, MD, Kotak Mahindra AMC told CNBC-TV18, “Undoubtedly the market is on the way up because of the exit poll and now the actual results are way below what exit polls were indicating and that’s why there is a correction in the market. Investors are looking forward to the actual results. Markets had factored in 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.”

Wave of Fear

Vinod Nair, head of research, Geojit Financial Services, said, “The unexpected outcome of the general election sparked a wave of fear selling in the domestic market, reversing the recent substantial rally. Despite this, the market maintains its expectation of stability within the coalition, led by BJP as the major election winner, thereby mitigating substantial downside in the medium-term.

“This is likely to lead to a major shift in political policy with a focus on social economics, which will have a positive effect on the rural economy. Alongside, the sectors that have topped in the past five years, including power, capital goods, real estate, and industrials, are advised to exercise caution in the near term. Nevertheless, the long-term growth prospects for these sectors remain robust,” Nair added.

Recovery Of The Market Depends on a Stable Government

Rupak De, senior technical analyst at LKP Securities, said, “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.”