📷 Image Credits: NDTV
The Indian stock markets experienced a significant drop today, with Indian stocks plummeting by over 5,000 points following early vote-counting trends indicating that Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance was leading in more than 272 seats. However, the extent of the victory remained uncertain, leading to market instability. The BSE Sensex recorded a 5.71% decrease of 4,378 points at 72,067, while the NSE Nifty 50 decreased by 5.74%, falling by 1,334 points at 12 noon.
The sharp decline in the benchmarks came after a previous surge where they had jumped over 3% on Monday, reaching record highs and marking the best session in nearly 40 months. Exit polls had projected that the BJP-led alliance would likely secure a two-thirds majority in the lower house.
Early trends indicated that the NDA was leading on 288 seats, with the INDIA bloc ahead on 213 seats. Among the major laggards in the Sensex were State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC, and HDFC Bank. On the other hand, Sun Pharma and Nestle were the only gainers amidst the market turmoil.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 6,850.76 crore on Monday, based on exchange data. Meanwhile, Asian markets such as Seoul, Tokyo, and Shanghai were trading lower, with Hong Kong showing gains. In the US, markets ended on a mixed note, while Brent crude, the global oil benchmark, declined by 0.68% to $77.83 a barrel.
The uncertainty surrounding the Lok Sabha Poll results has created volatility in the Indian stock markets, leading to significant fluctuations and investor caution. The ongoing developments in the election outcome, coupled with global market factors, continue to impact the stock market performance and drive market participants to closely monitor the situation for potential implications on their investments.
