MUMBAI: Benchmark equity indices Sensex and Nifty tanked over 8 per cent on Tuesday as the initial trend showed BJP winning a lesser number of seats than predicted in exit polls.
The 30-share BSE Sensex nosedived 6,234.35 points or 8.15 per cent to 70,234.43 in the afternoon trade. The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45.
Among the 30 Sensex companies, State Bank of India tanked over 16 per cent, while Power Grid and NTPC plunged nearly 15 per cent.
Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries were the other big laggards.
Early trends from the counting of votes on Tuesday threw up disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana and Rajasthan although it is expected to form the government with about 290 seats.
Foreign Institutional Investors (FIIs) bought equities worth Rs 6,850.76 crore on Monday, according to exchange data.
In Asian markets, Seoul, Tokyo and Shanghai were trading lower while Hong Kong traded with gains.
US markets ended on a mixed note on Monday.
Global oil benchmark Brent crude declined 0.82 per cent to USD 77.72 a barrel.
Markets jumped sharply on Monday after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.
The BSE benchmark soared by 2,507.47 points or 3.39 per cent to settle at a new closing peak of 76,468.78 on Monday, marking its biggest single-day gain in three years. During the day, the barometer jumped 2,777.58 points or 3.75 per cent to hit a record intra-day peak of 76,738.89.
The NSE Nifty climbed 733.20 points or 3.25 per cent to finish at 23,263.90. During the day, it soared 808 points or 3.58 per cent to hit a fresh intra-day all-time high of 23,338.70.
Congress Reacts
As financial markets went for a tumble on Tuesday after the trends of the Lok Sabha poll results showed that the BJP was not getting a majority on its own, the Congress said the markets were given an artificial booster dose by the exit polls and have now turned turbulent.
The Congress also recalled the words of former prime minister Manmohan Singh in 2004 to say that the party is committed to an orderly and healthy development of the financial markets that reflect the fundamentals of the economy.
photo Bilal bahadur
Congress general secretary Jairam Ramesh said the party-led United Progressive Alliance (UPA) government provided a fear-free and intimidation-free 10-year period (2004-14) for the private sector that helped the country achieve its highest GDP growth.
“Financial markets that were given an artificial booster dose by the exit polls are turbulent today. In this context, it is wise to recall the words of Dr Manmohan Singh on May 17th 2004, the last occasion on which the markets were faced with the prospect of such regime change,” Ramesh said in a post on X.
Recalling Singh’s words, he said, “There is absolutely no need for panic in the market. Very soon the alliance will unveil its CMP. The CMP will demonstrate the commitment of the United Progressive Alliance to fiscal discipline, realistic growth-oriented tax policies, control of unproductive and wasteful public expenditure and increased emphasis on agricultural growth, education, health, food security and social security in the context of a fast-growing economy that is integrating with the world as well.”
“The Congress is committed to the orderly and healthy development of the financial markets that reflect the fundamentals of the economy. Our tax policies and foreign direct investment regime will be pro-growth and will create an environment favourable for both Indian and foreign enterprises,” Ramesh said, quoting Singh’s words.
He added that what followed in 2004 was a “fear-free and intimidation-free decade for the private sector — a decade of the highest GDP growth India has ever seen, along with the highest private investment as a share of GDP”.
Early trends of the Lok Sabha poll results on Tuesday threw up disappointing results for the BJP-led NDA, which appears to be losing big in its strongholds of Uttar Pradesh, Haryana and Rajasthan, although it is expected to form the government with about 290 seats.
