Election results 2024: Sensex, Nifty crash as INDIA catches up with BJP-led NDA; PSU, Adani stocks fall
Lok Sabha election results 2024: While BJP-led NDA was leading with 265 seat counts, INDIA was catching up with 198 seats in early trends, up 82 seats over its 2019 tally.
- Jun 4, 2024,
- Updated Jun 04, 2024, 03:17 PM IST
Election results 2024: Sensex and Nifty came crashing on Tuesday, as the vote counting was underway, with initial trends suggesting the opposition INDIA gaining ground in the Lok Sabha elections over its 2019 tally, far more than Street expectations. While BJP-led NDA was leading with 287 seat counts, INDIA was catching up with 220 seats in early trends, up 82 seats over its 2019 tally. PSU, defence and railway-related stocks declined. Most Adani group shares fell.
Thirty of Thirty Sensex stocks fell. At 9.43, the 30-pack index was down 2,007 points or 2.62 per cent, to 74,467. Nifty tanked 654 points or 2.81 per cent to 22,609.65. The BSE PSU index plunged nearly 5 per cent while Adani group shares plummeted up to 12 per cent.
"One may begin to be guarded against exhaustion, should Nifty fail to clear 23390-440-480 or on direct fall below 23190, which may expose 22,490 or 21,800 initially. This surmise is supported by the fact that despite the sharp decline in VIX, it is still well above 20 suggesting that an outlier is still expected," said Anand James, Chief Market Strategist at Geojit Financial Services.
Among Sensex stocks, NTPC plunged 6.16 per cent, SBI declined 5.94 per cent while Power Grid tanked 5.85 per cent. Larsen & Toubro, Bajaj Finserv and Reliance Industries dropped up to 5 per cent.
Among Adani shares, Adani Enterprises slumped 9.62 per cent to Rs 3,295.10. Adani Ports plunged 8.91 per cent to Rs 1,443.80. Adani Ports cracked 8.91 per cent to Rs 797. Adani Green Energy Ltd and Adani Energy Solutions fell 10-11 per cent.Antique Stock Broking said exit polls have a chequered history with incorrect predictions in 2004, 2009 general election as well as in the recent 2023 state assembly elections of Chhattisgarh and Karnataka.
Elara Securities said empirical evidence suggests election years are positive for the equity markets. In each of the past four election years, the Nifty 50 has given a average return of 32 per cent, with significant contribution coming from post-election returns.
"Broader markets tend to do even better. Pre-election performance varies, but post-election rallies have historically been broad-based, resulting in positive returns across sectors. With the Nifty yielding 4 per cent in CY24 to date, there remains huge upside potential for a post-elections rally," it said.
Election results 2024: Sensex and Nifty came crashing on Tuesday, as the vote counting was underway, with initial trends suggesting the opposition INDIA gaining ground in the Lok Sabha elections over its 2019 tally, far more than Street expectations. While BJP-led NDA was leading with 287 seat counts, INDIA was catching up with 220 seats in early trends, up 82 seats over its 2019 tally. PSU, defence and railway-related stocks declined. Most Adani group shares fell.
Thirty of Thirty Sensex stocks fell. At 9.43, the 30-pack index was down 2,007 points or 2.62 per cent, to 74,467. Nifty tanked 654 points or 2.81 per cent to 22,609.65. The BSE PSU index plunged nearly 5 per cent while Adani group shares plummeted up to 12 per cent.
"One may begin to be guarded against exhaustion, should Nifty fail to clear 23390-440-480 or on direct fall below 23190, which may expose 22,490 or 21,800 initially. This surmise is supported by the fact that despite the sharp decline in VIX, it is still well above 20 suggesting that an outlier is still expected," said Anand James, Chief Market Strategist at Geojit Financial Services.
Among Sensex stocks, NTPC plunged 6.16 per cent, SBI declined 5.94 per cent while Power Grid tanked 5.85 per cent. Larsen & Toubro, Bajaj Finserv and Reliance Industries dropped up to 5 per cent.
Among Adani shares, Adani Enterprises slumped 9.62 per cent to Rs 3,295.10. Adani Ports plunged 8.91 per cent to Rs 1,443.80. Adani Ports cracked 8.91 per cent to Rs 797. Adani Green Energy Ltd and Adani Energy Solutions fell 10-11 per cent.Antique Stock Broking said exit polls have a chequered history with incorrect predictions in 2004, 2009 general election as well as in the recent 2023 state assembly elections of Chhattisgarh and Karnataka.
Elara Securities said empirical evidence suggests election years are positive for the equity markets. In each of the past four election years, the Nifty 50 has given a average return of 32 per cent, with significant contribution coming from post-election returns.
"Broader markets tend to do even better. Pre-election performance varies, but post-election rallies have historically been broad-based, resulting in positive returns across sectors. With the Nifty yielding 4 per cent in CY24 to date, there remains huge upside potential for a post-elections rally," it said.