Nifty down 3.75% and Sensex plummets 2,809.49 in early trading: Tuesday’s early morning transactions saw a more than 3% decline in the domestic equities benchmark indices, Sensex and Nifty, which had opened flat on the day of the vote counting and results release by the Election Commission of India.
After opening at 76285.78, down 0.23 percent from the previous finish of 76,468.78, the Sensex dropped 2,809.49 points, or 3.67 percent, to settle at 73,659.29. In early morning dealings, the larger Nifty also dropped 874.05 points, or 3.75 percent, to 22,389.85. Opening at 23,179.5, the 50-share index was down 84 points, or 0.36 percent.
This morning marked the beginning of the general election vote counting process. Early indicators indicate that the opposition’s INDIA group, which has already surpassed 200 seats, has significantly increased in size as compared to the 2019 results.
The decline in benchmark indices contrasts with Monday’s action, when the Sensex and Nifty jumped over 3% to close at all-time highs on exit polls that showed the BJP would win the Lok Sabha elections handily and Prime Minister Narendra Modi would be elected to a third term. The Sensex had opened 2,600 points ahead of the market.
The markets are closely observing if PM Narendra Modi will secure a historic third term and whether the NDA will win more than 400 seats in the Lok Sabha election, which is still to be concluded. A positive result might push Nifty toward 24,000, but the 22,500 level is still a critical support level, according to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
HDFC AMC, SUZLON, and DLF are important companies to keep an eye on; long-term accumulation of SUZLON is advised.
Adani Enterprises (8.3%), Adani Ports (7.19%), Power Grid Corporation (6.04%), Coal India (5.86%), and ONGC (5.65) are the NSE companies that saw the biggest declines in morning transactions.
