Stock market crash today: In a stunning turn of events, the Indian stock market experienced a massive meltdown on Tuesday as vote-counting trends indicated that Prime Minister Narendra Modi’s alliance might fall short of the anticipated landslide victory.
The benchmark BSE Sensex plunged over 4,300 points, marking its worst performance in four years and erasing its gains for 2024.The broader NSE Nifty also suffered a significant drop of 1,379 points or 5.93%, closing at 21,884.
The market capitalization of all listed companies on the BSE took a severe hit, with Rs 29.9 lakh crore wiped off, bringing the total to Rs 396 lakh crore. At one point during the day, indices fell as much as 8.5%, reminiscent of the market turmoil witnessed during the onset of the Covid-19 pandemic, according to an ET report.
Also Read | Adani Group stocks plummet as stock market crashes! M-cap falls by Rs 3 lakh crore
This sharp decline came just a day after indices had jumped over 3% following exit polls that projected a two-thirds majority for the BJP-led alliance in the lower house.
“The unexpected outcome of the general election sparked a wave of fear selling in the domestic market, reversing the recent substantial rally,” said Vinod Nair, Head of Research, Geojit Financial Services.
As of 3:45 pm, the National Democratic Alliance (NDA) was leading in nearly 293 seats, falling short of the magic number of 272 required for a simple majority in the 543-member lower house of parliament.
Also Read | RIL share price today: Reliance Industries’ stock crashes 10%; investors suffer Rs 1.67 lakh crore loss on Lok Sabha results uncertainty
Adani Group stocks bore the brunt of the market sell-off, closing 10-21% lower. Among the Sensex pack, NTPC, SBI, L&T, and Power Grid suffered losses ranging from 12-15%.
Almost all sectoral indices closed in deep red, with Nifty Bank falling 8%, Realty down 9.6%, PSU Bank plummeting 15%, Oil & Gas dropping 11.8%, and Metal declining 10.6%. Smallcap and midcap indices also closed 8.2% and 7.9% lower, respectively.