It is now evident that the BJP's NDA alliance is securing fewer seats in the Lok Sabha elections results than anticipated by the exit polls, which projected over 400 seats for the BJP alliance. This unexpected outcome had a substantial impact on the stock market, with significant fluctuations observed on Tuesday in the Sensex and Nifty. Consequently, there was a notable decline in the stock prices of both public sector companies and banks. Furthermore, various private companies, including the Adani Group, also experienced a decline in their share values.
The Nifty PSU Bank index recorded a significant drop of 839.55 points, or 10.49%, closing at 7,166.60, with Punjab and Sindh Bank witnessing a 14.75% decrease to Rs 55.50 on the NSE. Indian Bank's shares were trading at Rs 528.75, while Union Bank's were slightly lower at Rs 148.90. Meanwhile, State Bank of India shares plunged by 11.73% to Rs 799.45, and Punjab National Bank and Bank of Baroda each saw a decline of 10% to Rs 123.30 and Rs 267.25, respectively. The Nifty Bank index also saw a substantial drop, falling by 2,806.40 points to 48,173.55.
In the PSE index, the Nifty saw a decrease of 1,221.55 points, or 10.78%, closing at 10,110.25. Shares of Bharat Electronics Limited (BEL), PFC, RECL, and Bharat Heavy Electricals witnessed a decline of up to 15%. Similarly, on the NSE, shares of Hindustan Aeronautics, Container Corporation of India, ONGC, Coal India, NTPC, Gas Authority of India, SAIL, and Power Grid all saw a decrease of 10% each.
Among the Adani Group companies, there was a notable downturn, with Adani Ports experiencing a 20% decline, Adani Energy Solutions down by 19.80%, Adani Power by 19.76%, Ambuja Cement by 19.20%, and group flagship Adani Enterprises by 19.13% on the BSE. Additionally, Adani Total Gas fell by 18.55%, Adani Green Energy by 18.31%, NDTV by 15.65%, ACC by 14.49%, and Adani Wilmar by 9.81%.