Stock Market Bloodbath: Sensex Plunges 3,400 Points, Nifty Crashes Over 1,000
Early Losses Moderated
After plummeting sharply at opening, the key stock market indices staged a partial recovery. The 30-share Sensex, which had plunged 6,000 points an hour earlier, narrowed its losses to 3,372.15 points, settling at 73,096.63. The Nifty50, too, pared its losses to 1,053.50 points, closing at 22,210.40.
Reliance Investors Lose Big
Amidst the broader market downturn, Reliance Industries Limited (RIL) shareholders incurred significant losses. The stock's 9.6% plunge on the Bombay Stock Exchange resulted in an erosion of Rs 1.67 lakh crore in shareholder wealth.
Adani Group's Tumble
Benchmark stock indices plunged sharply during Tuesday's trading session, heavily impacting blue-chip stocks. Among the major losers were Adani Group companies, with Adani Enterprises and Adani Ports shedding up to 25% of their value. At around 1:22 pm, Adani Ports and Adani Enterprises had plummeted 16.07% and 15.38%, respectively, on the NSE.
Election Results Trigger Massive Volatility
The Lok Sabha election results 2024, revealing a closer contest than exit polls had predicted, sent shockwaves through the markets. Benchmark stock indices plunged over 8%, poised for their worst day in four years. The Sensex fell over 6,000 points at one point, while the Nifty50 shed over 1,600 points.
Bears Overpower Bulls
In a highly volatile trading session, equity markets were on track to wipe out their gains for 2024. However, at around 1:10 pm, both indices trimmed their losses, with the Sensex trading 4,567.45 points lower at 71,701.33 and the Nifty50 down 1,443.80 points to 21,820.10.
Election Uncertainty Dampens Sentiment
Exit polls were highly polarized, so any outcome showing less strength is negative, explained Anand James, chief market strategist at Geojit Financial.
Bulls Attempt Recovery
Despite the election jitters, bulls attempted to counter the heavy losses on Dalal Street. By 12:57 pm, the Sensex had pared its losses to 4,266.39 points, trading at 72,202.39. The Nifty50 followed suit, with its losses narrowing to 1,263.25 points, settling at 22,000.25.
Emkay Global Weighs In
The market is not receptive to a hung parliament or coalition government, which could lead to delays in decision-making, stated Madhavi Arora, Lead Economist at Emkay Global, Mumbai.
Market Capitalization Erosion
As the Sensex plunged 8%, the total market capitalization of all BSE-listed companies saw a significant erosion of approximately Rs 45 lakh crore, bringing it down to Rs 380.35 lakh crore.
Worst Session Since May 2020
Benchmark stock indices registered their steepest fall since the onset of the Covid-19 pandemic, as the Lok Sabha election results 2024 unexpectedly painted a more tightly contested picture. The S&P BSE Sensex shed 6,000 points, while the NSE Nifty50 lost 1,600 points.
Continued Sell-Off
The bloodbath on Dalal Street intensified, with the Sensex crashing over 6,000 points and the Nifty plummeting close to 2,000 points. This marked the worst session for Dalal Street since the Covid-19 pandemic.
Red Domination
On the BSE, 29 out of 30 stocks traded in the red as the Sensex plunged past 5,000 points.
