 "Stock market today: Why bears have mauled Sensex, Nifty down over 2.5% on LS polls 2024 vote counting day")
Benchmark Indian indices BSE Sensex and NSE Nifty 50 started were deep in the red when markets opened on Tuesday, as preliminary numbers started trickling in for Lok Sabha election 2024 from all over the country.
On Monday, BSE Sensex and Nifty50 had clocked best trading session ever, touching life-time highs yet again after rising over 3 per cent before closing at record highs.
Why Sensex, Nifty opened in red on June 4
Sensex and Nifty tanked after early trends in Lok Sabha poll 2024 results showed that BJP-led NDA seemed to be winning with a narrower margin than exit polls had predicted.
In the early trends of the Lok Sabha election 2024 counting, the BJP-led NDA was seen to have crossed the half-way mark with 278 seats, while the INDI Alliance was leading in 184 seats.
The Nifty 50 opened 2.22 per cent or 517.40 points down at 22,746.50, while the BSE Sensex dropped 1,622.03 points or 2.12 per cent to 74,846.75 in the opening trade.
At 9:46 IST, BSE Sensex was trading down 2,014.63 points or 2.63 per cent at 74,454.15, while Nifty50 was at 22,640.80, down 623.10 points or 2.68 per cent.
Impact Shorts
More ShortsInvestors lose Rs 9 lakh crore
On Tuesday, the market capitalisation, or m-cap, of all listed companies on BSE fell by Rs 8.78 lakh crore to Rs 417.13 lakh crore.
Reacting to the exit polls that had projected a significant victory for PM Modi, pushed markets to record highs as investors were encouraged by expectations of continued economic growth.
What to expect today?
Market Expert Sunil Shah said, on June 3, market acted on the outcome of exit polls. “The early trends are showing that the gap or the lead is not that big so the market is reacting to that. The market will remain volatile throughout the day,” he said.
#WATCH | Mumbai: On Sensex slumps by over 2500 points, Market Expert Sunil Shah says, "Yesterday market acted on the outcome of exit polls. The early trends are showing that the gap or the lead is not that big so the market is reacting to that. The market will remain volatile… pic.twitter.com/552eqO1MHI
— ANI (@ANI) June 4, 2024
“With the 733 point rally in the Nifty on Monday (June 3), the market has already discounted a clear win for the NDA and majority on its own for BJP. Only a dramatic change from this expected outcome will cause a major change in the market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Don’t buy, do some profit booking: Suggest analysts
“Investors need not rush in to buy today (June 4) even if the results confirm the exit polls,” Vijayakumar said, adding that investors should remain invested in largecaps and do some profit booking in smallcaps.
“A significant trend yesterday was the largecaps outperforming smallcaps. This is primarily the consequence of FIIs turning buyers. If the FIIs continue to buy, this largecap outperformance will continue,” Vijayakumar said.
“RIL, L&T, HDFC, ICICI and M&M are on strong wicket,” he added.
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