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BUSINESS EYE JUNE 06, 2024 | The Indian Eye 38

Bloodbath after boom: Markets go negative

as BJP & NDA fail to perform as expected

On Monday, Indian benchmark indices had closed at record highs after exit polls

indicated a comfortable majority for the NDA government

OUR BUREAU
Mumbai

ndian stock indices witnessed
a bloodbath on the day the Lok
ISabha were announced, where
incumbent BJP performed below par
and fell short of exit poll predictions
and the majority mark on its own.
The idea of a coalition govern-
ment lead by BJP at the center has
led to widespread market anxiety
and a sharp decline in stock indices.
The BJP, which has been the domi-
nant force in Indian politics for the
past decade, is seen as a pro-Industry
party whose policies have generally
favored economic growth and mar-
ket stability. The failure to secure a
clear majority to BJP of its own rais-
es concerns about the formation of a
stable government and the continua-
tion of economic reforms.
At the closing bell, Sensex closed
at 72,079.05 points, down 4,389.73
points or 5.74 per cent, while Nif- People watch the display screen as Sensex opens in red as NDA seats drop during the counting of votes for
ty closed at 21,884.50 points, down the Lok Sabha elections in Mumbai on Tuesday (ANI)
1,379.40 points or 5.93 per cent. All
Nifty sectoral indices, barring Nifty
FMCG, were deep in the red today. during Covid days. important support of coalition part- tor optimism on Monday.
Nifty metal, Nifty bank, Nifty financial The Rupee closed weaker ners, markets look jittery about the “After the media’s exit polls, now
services, Nifty PSU bank, Nifty private against the US dollar on Tuesday, prospects of strong decision making. the markets in a sense, barometer of
bank, Nifty realty, Nifty oil and gas, depreciating by 38 paise to close at Markets believe that the reformistic what they are expecting to happen
slumped the most, NSE data showed. 83.53. It closed at 83.15 on Monday. approach, which was a hallmark of on June 4 has also come about when
“The steep fall is due to the re- The Rupee had been largely steady the previous two terms, might take the Sensex and Nifty have shown a
sults so far falling short of the exit for the past year, largely due to RBI’s a backseat in the third term. Howev- huge hike of almost 2000+ points.
polls which the market had dis- intervention. er, our sense is that it is still early to It shows that the confidence, not
counted yesterday. If BJP doesn’t “This uncertainty triggered a jump to conclusions and should ide- just the markets but also the people
get a majority on its own there will panic sell-off across various asset ally wait for a clearer picture,” said of India bestowed upon Modi govt.
be disappointment and this is get- classes, impacting economic growth. Chowdhury. This is just one of the indicators,”
ting reflected in the market. Also, it The Dollar-Rupee exchange rate On Monday, Indian benchmark Poonawalla said.
is possible that Modi 3.O may not may continue to rise, potentially indices had closed at record highs, But Samajwadi Party chief Akh-
be as reform-oriented as the market reaching 83.90, with 83.40 serving as driven by fresh buying from investors ilesh Yadav said that it is because
expected and may turn more welfare- the immediate support level,” said after exit polls indicated a comfort- people are trying to earn a profit and
oriented,” said V K Vijayakumar, Jateen Trivedi, VP Research Analyst able majority for the NDA govern- tomorrow, they will get away. Akh-
Chief Investment Strategist, Geojit - Commodity and Currency, LKP Se- ment. After the stock market opened ilesh said, “This (Sensex-Nifty mark
Financial Services. curities. with an unprecedented uptick on record highs) is because people are
At one point during the after- Manish Chowdhury, Head of Monday, Bharatiya Janata Party trying to earn a profit, tomorrow they
noon, Indian equity indices plum- Research, StoxBox, asserted that leader Shehzad Poonawalla on Mon- will get away. Amul has increased the
meted over 8 per cent on Tuesday, markets have reacted sharply to the day said that markets are confident price of milk by Rs 2 to improve your
as poll trends indicated a closer than initial trends of the NDA leading on about BJP returning to power. health. They have increased prices to
anticipated fight for the incumbent around 290 seats, way less than as The stock market reached an all- help their people earn profits. There
Narendra Modi-led NDA govern- projected. time high after exit polls forecast a is a possibility that they will have a
ment. Sensex logged it worst session “With the NDA still looking to decisive victory for the BJP-led NDA slow counting and have power cuts
in over four years, it witnessed back form a government, though with the coalition, sparking widespread inves- at night.”

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