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Sensex Drops Over 6,000 Points as Lok Sabha Poll Votes Are Counted

June 4, 2024
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New Delhi: Indian stock markets crashed by over 6,000 points today, after a sharp rally in the previous session, as early vote-counting trends showed Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance leading in more than 272 seats, but the extent of the victory was not clear and its lead narrower than what exit polls had predicted.

The BSE Sensex was down 6.71 per cent or 5,602 points at 71,002, while the NSE Nifty 50 was down 6.89 per cent or 1,634 points at 12.15 am. This is the biggest single-day fall in Indian markets since the onset of the Covid pandemic.

The indexes saw their worst fall since March 2020, and erased all of Monday’s gains after exit polls projected that the BJP-led alliance will likely get a two-thirds majority in the lower house.

As per the initial trends, the NDA is currently leading on 298 seats, while the INDIA bloc is ahead on 225 seats. A party or alliance needs to cross the 272 mark in the 543-seat Lok Sabha assembly to form the government.

All sectors were in the red. Bank stocks fell 7.8%, realty dropped 9.1%, infrastructure declined 10.5%, while oil and gas stocks lost 11.7% and state-run companies and banks retreated 17% and 16%, respectively.

The biggest laggards in the 30 company Sensex were State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC, HDFC Bank.

Sun Pharma and Nestle were the only gainers.

“The fear of the market is whether present numbers will stay or will reduce further. (Even at current majority) there will be some element of disappointment as they are below market expectations,” said Mayuresh Joshi, head- equity research India at William O’Neil and Company.

(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)

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