The counting of votes for the Lok Sabha Elections 2024 is currently underway and the outcome differs significantly from the Exit polls. The polls predicted a clear NDA win which boosted the markets on Monday with the market up by at least 13 percent.
Counting sends shockwaves
Contrary to earlier expectations, the benchmark stock market indices, the S&P BSE Sensex and the Nifty50 have gone through high volatility. The counting has dampened the market which was in an optimistic mood previously.
On Monday, the indices reached an all-time high, driven by the Exit poll reactions promising a big NDA victory. However, the counting trends in the constituencies show a close fight between the BJP and the opposition. The BJP hotspots like Amethi has seen a tough fight between BJP and Congress with congress candidate currently leading ahead of Smriti Irani (BJP).
Sensex fell by 6000 points while the Nifty fell by 3000 points. Today it sees the worst session since May 2020. Out of the 50 stocks in Nifty50, 48 stocks experienced decline in the market as it crashes. The companies that experienced major losses were what people called ‘Modi stocks’, stocks of firms that benefited from Modi’s policies and were considered to be close to the government.
As the 30 share Sensex plunges, the Sensex plunges over 8 percent which saw the erosion of total market capitalization of the BSE worth ₹45 lakh crore to ₹380.35 lakh crores.
The market does not want a hung parliament or a coalition government, where you will have a lot of delays in decision-making,” said Madhavi Arora, Lead Economist, at Emkay Global, Mumbai.
Nifty, Sensex trading in red
Out of the stocks on BSE, 29 stocks out of 30 were trading in red as the Sensex fell.
The Adani stock which grew tremendously yesterday with the Exit polls reaction, the Group today has suffered a lot dropping significantly. Adani Ports fell to the ₹1189 today from yesterday’s high of ₹1588. Adani Power fell from ₹878 to a low of ₹698 today.
State Bank of India which became the 7th company to reach the 8 lakh crore market cap yesterday reached a high of ₹880. The stock today fell as low as ₹738.
BSE BANKEX’s top stock losers included Bank of Baroda (-16.7 percent), SBI (-13.4 percent), IndusInd Bank (-8.76 percent) and ICICI Bank (-7.86 percent).
