Mumbai. The stock market fell sharply on Tuesday after general election trends indicated that the ruling BJP would fall short of a majority. During this period, the major stock index Sensex and Nifty fell by about six percent. This is the biggest fall in a single day in the last four years. Earlier, after a sharp rise of more than three percent on Monday, the 30-share BSE Sensex on Tuesday slipped 4,389.73 points or 5.74 percent to close at a two-month low of 72,079.05 points.
During the day’s trading, the Sensex fell 6,234.35 points or 8.15 percent to its lowest level in nearly five months at 70,234.43 points. During this period, the National Stock Exchange’s Nifty fell 1,982.45 points or 8.52 percent to 21,281.45 points. Later it closed at 21,884.50 points with a huge loss of 1,379.40 points or 5.93 percent. Earlier, on March 23, 2020, when the lockdown was imposed due to the Kovid-19 epidemic, the Sensex and Nifty had fallen by about 13 percent.
There was heavy profit booking in PSU, public sector banks, power, energy, oil and gas and capital goods stocks. Vinod Nair, Head of Research, Geojit Financial Services, said, “The unexpected results of the general elections created fear in the domestic market. Due to this, the recent huge rally was reversed. Despite this, the market maintained its hope of stability within the BJP-led coalition.”
He said that this will bring about a big change in politics focusing on social economics, which will have a positive impact on the rural economy. When the Narendra Modi government came to power on May 16, 2014, the Sensex closed at 24,121.74 points, up 261.14 points or 0.90 percent. On that day, the Nifty rose 79.85 points or 1.12 percent to reach 7,203 points. On May 23, 2019, when the Modi government came to power for the second time, the Sensex closed at 38,811.39 points, down 298.82 points or 0.76 percent. On this day, the Nifty closed at 11,657.05 points, down 80.85 points or 0.69 percent.
Among the Sensex companies, NTPC fell the most by about 15 percent. Apart from this, SBI fell by 14 percent, L&T by 12 percent and Power Grid by more than 12 percent. Tata Steel, Indusind Bank, Bharti Airtel, ICICI Bank, Axis Bank, Reliance Industries and JSW Steel also fell significantly. On the other hand, Hindustan Unilever rose by six percent and Nestle by three percent.
Tata Consultancy Services, Asian Paints and Sun Pharma were also among the gainers. All sectoral indices except FMCG closed with losses. According to stock market data, foreign institutional investors (FIIs) bought shares worth Rs 6,850.76 crore on Monday. Global oil benchmark Brent crude fell 1.88 percent to $ 76.89 per barrel.
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