- Friday, January 24, 2025
The BSE Sensex plummeted by 6.71% or 5,602 points to 71,002, while the NSE Nifty 50 dropped by 6.89% or 1,634 points, marking the most significant single-day decline in Indian markets since the onset of the COVID-19 pandemic.
By: Shubham Ghosh
THE Indian stock markets on Tuesday (4) plunged by more than 5,000 points, following a sharp surge in the preceding session. The downturn was triggered by early election results indicating prime minister Narendra Modi’s Bharatiya Janata Party-led National Democratic Alliance (NDA) leading in over 272 seats in the 543-member Lok Sabha or Lower House of the Indian parliament.
However, the extent of the victory remained uncertain, with the lead narrower than anticipated by exit polls.
The BSE Sensex plummeted by 6.71 per cent or 5,602 points to 71,002, while the NSE Nifty 50 dropped by 6.89 per cent or 1,634 points at 12:15 am local time. It marked the most significant single-day decline in Indian markets since the onset of the COVID-19 pandemic.
Read: Despite Ram Mandir inauguration, Modi’s BJP receives blow to Uttar Pradesh: trends
The indices experienced their most severe decline since March 2020, wiping out all gains made on Monday, following exit poll projections suggesting that the BJP-led alliance is likely to secure a two-thirds majority in the lower house.
Initial trends indicate that the NDA is currently leading on 298 seats, while the opposition Indian National Developmental Inclusive Alliance bloc is ahead on 225 seats. To form the government in the 543-seat Lok Sabha assembly, a party or alliance must touch the magic figure of 272.
Read: India election results: What could a reduced majority mean for Modi’s BJP?
According to a report, every sector saw a decline, with bank stocks falling by 7.8 per cent, realty by 9.1 per cent, infrastructure by 10.5 per cent and oil and gas stocks by 11.7 per cent. State-run companies and banks also retreated — by 17 and 16 per cent, respectively.
Among the 30 companies in the Sensex, the biggest laggards were State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC and HDFC Bank.
Among the gainers were Sun Pharma and Nestle.
“The fear of the market is whether present numbers will stay or will reduce further. (Even at current majority) there will be some element of disappointment as they are below market expectations,” Mayuresh Joshi, head- equity research India at William O’Neil and Company, was quoted as saying by NDTV.
