A major selloff hit the Indian stock market on Tuesday (4 June, 2024) after vote-counting trends revealed results starkly different from exit poll predictions.
According to analysts, the Nifty 50 began at 23,179.50 on 4 June, 2024, gap down from its previous close of 23,263.90, further dropping 8.5% to an intraday low of 21,281.45. The Sensex started at 76,285.78, lower than its prior close of 76,468.78, declining 8.2% to 70,234.43.
The Sensex ended with a substantial loss of 4,390 points, or 5.74%, at 72,079.05. The Nifty 50 finished with a decrease of 1,379 points, or 5.93%, at 21,884.50.
Experts say that Nifty 50 experienced its largest percentage drop in a single day in over four years, since early 2020 when it suffered significant losses during the onset of the COVID-19 pandemic.
This decline came as early vote-counting trends indicated that the ruling BJP might not secure a clear majority in the Lok Sabha elections.
At the time of publishing, the BJP was leading in 234 seats. This indicates that Prime Minister Narendra Modi is likely to return to power.
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The mid and small-cap indices experienced significant declines too. The BSE Midcap index closed with an 8.07% loss, having dropped as much as 12% during the session. The BSE Smallcap index fell over 10% intraday, ending with a 6.79% loss.
India’s volatility index, known as India VIX, jumped by 24%, indicating increased market anxiety over the weak mandate.
All in all, investors lost over Rs. 40 lakh crore in market capitalization on this fateful day.
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