After a strong rally in the previous session, Indian stock markets fell more than 4,000 points today. The early election results showed the alliance led by Prime Minister Narendra Modi’s Bharatiya Janata Party leading in more than 272 seats, but the margin of victory was unclear and the party’s lead was smaller than exit polls had predicted.
The NSE Nifty 50 finished 5.93 percent or 1,379 points lower than the BSE Sensex, which closed 5.74 percent or 4,389 points higher at 72,079 points. Since the start of the Covid epidemic, Indian markets have seen their largest one-day decline.
All of Monday’s gains were lost in the steep decline, which followed exit polls indicating that the BJP-led alliance would probably win a two-thirds majority in the lower house.
According to early indications, the INDIA group presently has 225 members, whereas the NDA currently has 298 seats. To establish the government, a party or coalition must secure more than 272 seats in the 543-seat Lok Sabha legislature.
Every industry was in the red. Real estate sank by 9.1%, infrastructure fell by 10.5%, oil and gas stocks fell by 11.7%, state-run businesses and banks fell by 17% and 16%, and bank stocks fell by 7.8%.
Among the 30 companies that make up the Sensex, State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC, and HDFC Bank were the largest laggards.
Nestle and Sun Pharma were the only winners.
