Election results: On June 4, the day of the vote counting, Dalal Street saw carnage as market players remained apprehensive that the BJP-led NDA had secured a clear mandate but had failed to return with a significantly larger majority as predicted by exit polls.
The largest one-day decline in the Nifty50 index since March 23, 2020 (during the Covid lockdown crisis) was recorded.
The Nifty index dropped 1,982.45 points during the day, reaching a low of 21,281.45, and the Sensex plummeted 6,234.35 points, reaching a low of 70,234.43. For the day, both indices fell by around 5–6%, marking the largest one-day decline since at least February 2022.
The Nifty was down 1,379.40 points, or 5.93 percent, at 21,884.50 at the closing, while the Sensex was down 4,389.73 points, or 5.74 percent, at 72,079.05.
Election results
Results at 4.07 pm, 4th June, 2024 (Source)
The market capitalization of BSE-listed businesses fell to Rs 395.99 lakh crore from Rs 425.91 lakh crore in the previous session, resulting in an approximate erosion of Rs 30 lakh crore in investors’ wealth.
In the meantime, intraday jumps in volatility were observed, with the India VIX rising by almost 40% to surpass 29. The volatility index had not increased this much in at least nine years.
Adani Ports, Adani Enterprises, ONGC, NTPC, and SBI were the biggest losers on the Nifty, whereas winners were HUL, Nestle, Britannia Industries, Hero MotoCorp, and Tata Consumer Products.
With the exception of FMCG, every other sectoral index saw a decline of more than 10%, including Realty, Telecom, Metal, Capital Goods, Oil & Gas, Power, and PSU Bank.
The smallcap index dropped by around 7%, while the BSE Midcap index dropped by 8%.
The Nifty Bank index experienced an intraday low of 46,077.85 before finishing eight percent lower at 46,928.60.
Also read: Election results making Stock Market bounce up and down