After a robust surge in the preceding session, propelled by optimistic exit polls predicting a clear BJP victory in the Lok Sabha elections, market sentiment took a hit as actual election results revealed a mixed trend on Tuesday morning.
The stark contrast between exit poll projections and ongoing vote counting, indicating varied outcomes, tempered investor confidence, prompting a more cautious approach in the market. Despite initial enthusiasm, uncertainty surrounding the election outcome introduced volatility, compelling investors to reassess their positions and adjust their strategies accordingly.
Against this backdrop, the Nifty 50 relinquished all gains from Monday, plummeting 3.75% in today’s intraday trade to reach a low of 22,389 points, while the Sensex also experienced a significant downturn, dropping nearly 3% during the trading session to hit a daily low of 74,234 points.
PSU stocks bore the brunt of the market turmoil, with the S&P BSE PSU index plunging nearly 8.14% in today’s trade to 20,701, wiping out all gains from Monday. Currently, all 56 constituents of the index are trading in the red, with SJVN leading the losses with a decline of 10%, followed by HUDCO with a 7% drop.
Furthermore, various other stocks, including Ircon International, GAIL (India), NHPC, Bharat Dynamics, General Insurance Corporation, National Aluminium Company, REC, Union Bank of India, Punjab National Bank, UCO Bank, Bank of Maharashtra, Bank of Baroda, Life Insurance Corporation, and Bharat Heavy Electricals, are all experiencing declines ranging from 5.5% to 7%.
Additionally, the Nifty PSU bank index witnessed a nearly 7% tumble, while the Nifty PSE and Nifty CPSE indices are trading with drops of 6.90% and 6.77%, respectively.
Likewise, BSE Power also erased the majority of its Monday gains and is trading with a drop of 6.13%.
On the previous day, the BSE benchmark witnessed a remarkable surge, gaining 2,507.47 points, or 3.39%, and settling at a new closing peak of 76,468.78, marking its most substantial single-day increase in three years. Throughout the day, the barometer skyrocketed by 2,777.58 points, or 3.75%, to achieve a record intraday high of 76,738.89.
Similarly, the NSE Nifty experienced significant gains, climbing 733.20 points, or 3.25%, to close at 23,263.90. In intraday trading, it surged by 808 points, or 3.58%, to establish a fresh all-time high of 23,338.70.
Disclaimer: We advise investors to consult certified experts before making any investment decisions.
