Sensex, Nifty crash amid counting of votes as INDIA bloc keeps up with BJP-led NDA

Sensex and Nifty witnessed their worst fall on June 4 since March 2020 as the counting of votes for Lok Sabha elections is underway, with trends suggesting the opposition INDIA bloc is catching up with the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA).

While Sensex fell by 4,200 points, Nifty was down by 5.4%, per reports.

Thirty of Thirty Sensex stocks fell which was down 2007 points or 2.62%, to 74,467. Nifty crashed 654 points or 2.81% to 22,609.65. The BSE PSU index nosedived nearly 5% while Adani group shares tumbled up to 12%.

All sectors were in the red. Bank stocks fell 7.8%, realty dropped 9.1%, infrastructure declined 10.5%, while oil and gas stocks lost 11.7% and state-run companies and banks retreated 17% and 16%, respectively, the report said.

In Nifty 50 index, the top losers were Adani Enterprises and Adani Ports, falling 19% each, while other Adani group stocks were down between 9-19%. 

The group stocks had jumped between 4%-18% on June 3 after the exit polls showed a landslide victory for NDA.

The present numbers have brought an air of disappointment as they are below market expectations, according to experts.

The market that showed upward trend after exit polls, witnessed a significant reversal in the Indian markets. 

The shift has resulted in frantic selloff by investors that erased approximately ₹26 lakh crore in wealth during intraday trading.

As political events tend to influence market behavior, investors are advised to tread with caution and mitigate risk with long-term strategies.