Market records steepest weekly declines in over two years
At close, Sensex ended near the 78,000 mark, shedding 1.5% from the previous session, while the Nifty fell below 23,600, also down 1.5%.
Amid the poll counting showing mixed outcomes since the morning, the stock market witnessed a bloodbath with Sensex down 3,265 points or 4.25% at 73,224, while the Nifty was down 1,178 points or 5.07% at 11am.
BSE Midcap and smallcap indices were also down 4% each. All the sectoral indices are trading in the red with PSU Bank down 9%.
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A sharp selloff in the Indian stock market resulted in a significant loss for investors, reducing their wealth by approximately Rs 20 lakh crore within the first 20 minutes of trading.
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Experts highlighted that the Indian stock market had already factored in a significant majority for the NDA, as exit polls had predicted. However, early trends showed that the results may not align with market expectations, which seems to have spooked investors.
In the previous session, the Sensex and the Nifty 50 had clocked robust gains expecting a solid majority of NDA.
Adani Group stocks dropped up to 18%, taking a significant hit after experiencing substantial gains in the last couple of trading sessions.
The sudden drop is due to unwinding of speculative positions, as investors take profits or reduce their exposure.
The sharp correction led to Adani Group’s market capitalisation eroding by over Rs 2.3 lakh crore.
The benchmarks had jumped more than 3% on Monday, hitting record highs and logging their best session in nearly 40 months after exit polls projected that the BJP-led alliance will likely get a two-thirds majority in the lower house of Parliament.
As per the early trends, the NDA is currently leading on 288 seats, while the INDIA bloc is ahead on 213 seats.
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