The Indian stock market witnessed a sharp decline today as early trends from the Lok Sabha election results emerged, indicating a lag for the ruling NDA coalition. At the opening, both the Sensex and the Nifty plummeted, with the Sensex dropping by 2000 points and the Nifty by approximately 600 points. Currently, the Sensex stands at 74,000, while the Nifty hovers around 22,600.
Across all sectoral indices of the NSE, significant declines are observed. The Nifty PSU Bank Index experienced a drop of over 7%, while the Financial Services and Metal sectors saw declines exceeding 4% and 5%, respectively. Additionally, the Realty and Private Bank Indexes both fell by more than 3%.
After a strong rally on Monday, the Indian stock market faced sharp selling in early morning deals on Tuesday. The Nifty 50 index lost around 700 points, touching an intraday low of 22,566, while the BSE Sensex lost over 2000 points, touching an intraday low of 74,234. Similarly, the Bank Nifty index lost over 1500 points, touching an intraday low of 49,409.
The market’s downturn is attributed to the unexpected Lok Sabha Election results, which have disappointed stock market investors. Avinash Gorakshkar, Head of Research at Profitmart Securities, noted, “This sharp fall in the Indian stock market is mainly due to the disappointing early trends in the Lok Sabha Election results. This trend is definitely not in sync with the Exit Poll.”
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Despite the early trends, Gorakshkar emphasized that the situation will likely become clearer in the next one to two hours. He advised investors to maintain a ‘strict stop loss’ strategy to manage risks in such a volatile market.
Reflecting on the market’s volatility, Sumeet Bagadia, Executive Director at Choice Broking, highlighted the rise in the India VIX Index, indicating increased volatility in the Indian stock market. Bagadia stated, “The India VIX Index has risen around 20 percent, touching a new 52-week peak of 26.32 in the early morning session.”
Looking ahead, Bagadia suggested that the Nifty has support levels at 22,400 and 22,100, the BSE Sensex at 48,500 and 48,200, and the Bank Nifty at 73,700 and 73,000. However, he cautioned that continued volatility is expected in the near term, signaling potential challenges for investors navigating the current market conditions.
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