After falling over 6,000 points during the day, BSE’s Sensex closed 5.4% down at 72,079 while the broader NSE Nifty dropped 5.93% and closed at 21,884.
About Rs 30 lakh cr were wiped out from the markets during the June 4 trade. The market capitalization of all listed companies on BSE declined to Rs 396 lakh crore.
During the day, indices fell as much as 8.5%, poised for their worst session since the onset of the COVID-19 pandemic. Nifty and Sensex had jumped over 3% on Monday after exit polls projected that the BJP-led alliance would likely get a two-thirds majority in the lower house.
At 4.30 pm, the (NDA) was leading with 294 seats. 232 seats is the minimum needed for a simple majority in the 543-member lower house of parliament.
Following the trends, Adani Group stocks closed 10-21% lower. While from the Sensex pack, NTPC, SBI, L&T, and Power Grid closed 12-15% lower.
Barring the Nifty FMCG index, all the sectoral indices closed in deep red. Nifty Bank fell 8%, Realty fell 9.6%, PSU Bank fell 15%, while Oil & Gas fell 11.8% and Metal fell 10.6%. Meanwhile, small-cap and mid-cap closed 8.2% and 7.9% lower.
As per Vinod Nair of Geojit Financial Services, “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. long-term growth prospects for these sectors remain robust.”
Global Markets and Rupee
Global shares eased on Tuesday. The MSCI All-World index was last down 0.2%.
The Indian rupee slumped on Tuesday. The rupee closed at 83.53 against the U.S. dollar.
