Stock Market Crash: As the trends of Lok Sabha elections were not in line with the exit polls, the market witnessed a decline all around and investors lost Rs 30 lakh crore in one trading session.
The Indian stock market fell heavily on Tuesday as the trends of the Lok Sabha election counting were lower than the exit poll estimates. The benchmark index Sensex closed with a decline of more than 5 percent and the Nifty closed with a decline of 6 percent. Tuesday’s trading session was a loss-making one for the Indian stock market. Due to the trends of the Lok Sabha elections not being in line with the exit polls, the market witnessed an all-round decline and investors lost Rs 30 lakh crore in one trading session.
Where did the decline happen?
The BSE main index Sensex fell 4,389 points or 5.74 percent to close at 72,079 points and the NSE main index Nifty slipped 1,379 points or 5.93 percent to close at 21,884 points. There has been a big sell-off in midcap and smallcap stocks. The Nifty Midcap 100 index fell 4,202 points or 7.88 percent to close at 49,150 points and the Nifty Smallcap index fell 1,406 points or 8.23 percent to close at 15,692 points.
Which indexes fell the most?
The biggest impact of the decline was seen in the public sector banks, metal, energy, realty and infra index. These closed with a decline of up to 15 percent. Only the FMCG index closed in the green. It had a rise of about one percent. The market cap of the Bombay Stock Exchange (BSE) has come down by about Rs 30 lakh crore to Rs 396 lakh crore, which was earlier Rs 426 lakh crore. India VIX, which shows the fluctuations in the market, closed at 26.74 points with a jump of 27 percent. NTPC, SBI, L&T, Power Grid, Tata Steel, IndusInd Bank and Reliance were the top losers in the Sensex pack. HUL, Nestle, TCS, Asian Paints and Sun Pharma were the top gainers.
What do market experts say?
Market experts say that the market was expecting a one-sided victory of the NDA, but this did not happen. Due to this, a big decline was seen in the market. Rupak De, Senior Technical Analyst, LKP Securities, says that the psychological level of 22,000 is going to be very important. If the decline is more than this, then the level of 21,400 to 21,500 can also be seen. There is a possibility of a big recovery only if BJP wins the elections comfortably.
