The stock market suffered greatly because the NDA failed to secure the elusive “400 par,” as exit polls had predicted that Prime Minister Narendra Modi’s alliance would win a resounding majority.
Adani was the worst-hit stock on a day when the Sensex and Nifty saw their worst performance since the pandemic crash.
But when the vote count started, chaos ensued. Sensex dropped more than 6,000 points, and Nifty dropped nearly 2,000 points, undermining PM Modi and Home Minister Jay Shah’s earlier assertions that the market had peaked.
Most investors lost about Rs 30 lakh crore on the day as most stocks traded in the red, except FMCG stocks like Hindustan Unilever, Nestle India, and Britannia. Despite this, most had anticipated a market rally.
The Nifty fell 5.93%, causing carnage on Dalal Street. Sensex and Bank Nifty also suffered large losses. Despite the NDA gaining an overall majority in the Lok Sabha elections of 2024, investors were disappointed, according to Prashanth Tapse, Senior vice president (Research), Mehta Equities Ltd.
According to Aditya Khemka, Fund Manager at InCred Asset Management, the current market activity points to the emergence of a stock picker’s market and likely a protracted break for passive investors.
“We expect the market to be sideways shortly and businesses with strong earnings momentum and reasonable valuations to outperform the market,” Khemka stated.
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