Market crash: Sensex and Nifty bleeds, falls up to 3.5 per cent

The frontline indices - BSE Sensex and NSE Nifty50 opened 2% lower on Tuesday after surging more than 3% each on Monday.
Index heavyweight Reliance Industries crashed more than 4% while Adani Group stocks plummeted up to 10%.
Index heavyweight Reliance Industries crashed more than 4% while Adani Group stocks plummeted up to 10%. File photo

NEW DELHI: India’s equity market fell sharply on the election result day as soon as the bell rang at 9.15 am. The sharp fall in local equities came even as early trends showed a lead for the BJP-led NDA alliance. However, early trends also showed that the opposition INDIA bloc’s seat tally could be ahead of what exit polls had predicted.

The frontline indices - BSE Sensex and NSE Nifty50 opened 2% lower on Tuesday after surging more than 3% each on Monday. The selling pressure soon intensified and two indices crashed 3.5% each. Sensex hit a low of 73,659 and Nifty hit a low of 21,179 on Tuesday.

Index heavyweight Reliance Industries crashed more than 4% while Adani Group stocks plummeted up to 10%.

"With the 733 point rally in the Nifty yesterday the market has already discounted a clear win for the NDA and majority on its own for BJP. Only a dramatic change from this expected outcome will cause a major change in the market. Investors need not rush in to buy today even if the results confirm the exit polls. Remain invested in largecaps and do some profit booking in small caps,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

He added, “A significant trend yesterday was the largecaps outperforming smallcaps. This is primarily the consequence of FIIs turning buyers. If the FIIs continue to buy, this largecap outperformance will continue. RIL, L&T, HDFC, ICICI and M&M are on strong wickets."

Aditya Gaggar, Director of Progressive Shares said that on the daily chart, Nifty50 has formed a hanging man candlestick pattern which indicates a trend reversal but in the near term, it is the general election's outcome likely to influence the market trend which will lead to immense volatility on both sides.

All the sectors have shown a strong outperformance in the previous session and some of them are at their record levels but considering the probable volatility, we will wait for a clear picture, added Gaggar.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com