Business

Indian Stock Market Plunges Amidst Lok Sabha Election Uncertainty

As the counting of votes for the Lok Sabha elections reached a crucial stage, the Indian stock market witnessed a dramatic downturn on Tuesday, sending shockwaves across investors and analysts alike.

The market’s response to the unfolding political landscape was swift and severe, with all sectoral indices, particularly those linked to public sector undertakings (PSUs), trading deeply in the red.

Sensex Crashes Over 6,000 Points

The benchmark index, Sensex, bore the brunt of the sell-off, plummeting nearly 6,000 points, approximately 8 percent, to touch 70,397, while the broader Nifty index suffered an even steeper decline of 8.5 percent, shedding nearly 2,000 points to reach 21,329 by 12:30 PM.

The collective market capitalization of BSE-listed companies witnessed a staggering erosion of around Rs 44 lakh crore of investors’ wealth on Tuesday alone.

The intensity of the downturn was reflected across various sectors, with the BSE Capital Goods index experiencing a near-10% nosedive.

This sharp decline came in the wake of early election trends indicating a potential setback for the ruling BJP-led National Democratic Alliance (NDA).

The market turmoil began early in the trading session, with the Sensex registering a steep fall of 2,713 points, or 3.55 percent, while the Nifty followed suit, plunging by 838 points, or 3.65 percent.

Adding to the volatility, the India Volatility Index (India VIX) surged by 44 percent, reaching 33.33 points, underlining the prevailing nervousness among investors.

This downturn marks a stark reversal from Monday’s buoyant trading session, where the Sensex had soared by 2,507 points, or 3.39 percent, to close at 76,468, and the Nifty had surged by 733 points, or 3.25 percent, ending the day at 23,263.

These gains had come in response to optimistic exit poll projections favoring a comfortable victory for the BJP-led NDA in the Lok Sabha elections.

However, the sudden turn of events has injected a considerable degree of uncertainty into the market, as investors grapple with the evolving political landscape and its potential implications for the economy and corporate sector.

Also Read: MediaTek Joins Arm Total Design Ecosystem To Advance AI Innovations

Mankrit Kaur

Recent Posts

Devotees Mistakenly Collect AC Condensation As ‘Charan Amrit’ At Mathura Temple

Devotees at Mathura's Banke Bihari temple gathered to collect water dripping from a sculpted elephant,…

10 mins ago

State Cannot Claim Private Property Under Article 39(b): Supreme Court

A nine-judge SC bench ruled that the State cannot indiscriminately seize private property for redistribution…

37 mins ago

RG Kar Case: Junior Doctors In West Bengal Protest Alleged Gaps In CBI Chargesheet

Junior doctors in WB protested Tuesday over alleged flaws in the CBI chargesheet on their…

1 hour ago

Supreme Court Upholds Uttar Pradesh Madrasa Education Act; Sets Limits On Higher Education Regulation

The SC upheld the UP Board of Madrasa Education Act, 2004, reversing the Allahabad High…

1 hour ago

How US Presidential Election Is Conducted – Explained

The US presidential election is a complex, multi-step process that involves both voters and an…

2 hours ago

Mumbai Police Uncover Connections & Weapons In Baba Siddiqui Murder Investigation

The Mumbai Police disclosed that the firearms used to assassinate late NCP leader Baba Siddiqui…

3 hours ago