During trading on Tuesday, domestic stocks broke completely, erasing all of the gains from the prior session. The BJP-led alliance under by Prime Minister Narendra Modi was certain to gain a majority, but the margin of victory remained unclear as the alliance's advantage was smaller than expected. As a result, the benchmarks plummeted dramatically.
The wider NSE Nifty index down 1,116 points, or 4.80%, to 22,148 level, while the 30-share BSE Sensex pack plummeted 4,093 points, or 5.35 percent, to trade at 72,375. The decline in domestic bourses was so great that today's BSE market capitalization (m-cap) loss was around Rs 26.10 lakh crore.
The sharp decline is because the market yesterday dismissed the exit poll findings, which have so far fallen short. The market is expressing its dismay that the BJP won't be able to secure a majority on its own. Additionally, Modi 3.O could out up being more welfare-oriented than the market anticipated and less reform-oriented, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The indexes were dragged lower by sales in a few heavyweights, including Reliance Industries Ltd., HDFC Bank, State Bank of India (SBI), Larsen & Tourbro (L&T), ICICI Bank, Bharti Airtel, NTPC, and Power Grid.
Here are the stats for today's market decline:
Wealth of investors declines by Rs 26.1 lakh crore
According to the BSE m-cap, investor wealth decreased by Rs 26.10 lakh crore today to Rs 399.81 lakh crore, down from the previous session's valuation of Rs 425.91 lakh crore.
On the BSE, 151 equities reached 52-week lows
Today, 151 stocks fell to their lowest points in 52 weeks. Several BSE 500 stocks experienced their one-year lows, including Anupam Rasayan India, Atul Ltd, Can Fin Homes, Eureka Forbes, GMM Pfaudler, HDFC Life Insurance Company, and IndiaMART Intermesh. Nevertheless, today saw 104 stocks reach their corresponding one-year highs.
