The Sensex and Nifty continued their downward spiral, dropping 5% each by noon on June 4 as indications suggest that the NDA will return to power with a reduced majority, contrasting sharply with expectations of a stronger mandate.
At 11:15 am, the Sensex plummeted by 3,737 points or 4.9% to 72,731, while the Nifty 50 declined by 1,169 points or 5% to 22,094. Market dynamics showed 362 shares advancing, 2915 shares declining, and 70 shares remaining unchanged.
PSU stocks suffered the most, with trading in many being temporarily suspended following a 15% decline. BEL, PFC, and REC were among the major losers, dropping between 15-20%.
Additionally, financial services and oil and gas stocks bore the brunt of the selling pressure as anxious investors liquidated their positions.
Brokers indicated that the significant decline likely triggered margin calls, further intensifying the selling pressure.
Key Market Movements:
Nifty Gainers: HUL, Hero MotoCorp, Britannia, Divis Labs, Sun Pharma
Nifty Losers: Adani Ports, Adani Enterprises, Coal India, NTPC, SBI
Sensex Gainers: HUL, Sun Pharma, Titan Company, Nestle, Asian Paints
Sensex Losers: NTPC, SBI, Power Grid Corp, L&T, Axis Bank
Stock Moves:
Adani Ports and Special Economic Zone (ASPEZ): Shares dropped 8% due to profit booking despite an ‘overweight’ call by Morgan Stanley with a target price of Rs 1,517 per share.
Defense Sector: Shares of defense-related companies fell by up to 9% as investors capitalized on recent gains.
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