In a dramatic turn of events, the Indian stock markets witnessed a massive sell-off, with the Sensex plummeting over 3,200 points and the Nifty falling below the 22,250 mark. This steep decline has led to an erosion of investor wealth amounting to Rs 21 lakh crore, marking one of the most significant single-day losses in recent market history.This downturn came as early vote-counting trends showed Prime Minister Narendra Modi's Bharatiya Janata Party-led alliance leading in more than 272 seats. However, the extent of the victory was unclear, and the lead was narrower than what exit polls had predicted. The counting of votes for the 2024 Lok Sabha Elections is underway, and the outcome is poised to significantly impact Dalal Street's sentiment today.
Contrary to earlier expectations, the benchmark stock market indices, S&P BSE Sensex and NSE Nifty50, have tumbled due to high volatility. This unexpected turn has sent shockwaves through the market, dampening the previously optimistic mood. On Monday, both indices had soared to new all-time highs, driven by exit poll projections of a decisive victory for the BJP and Prime Minister Narendra Modi. However, early trends indicate a closer fight between the two major alliances, NDA and INDIA, leading to a swift downturn.
As of now, during the vote counting for the 543 Lok Sabha seats on Tuesday, the BJP-led National Democratic Alliance (NDA) had exceeded the halfway mark of 272, leading in 297 seats. However, this figure fell short of the overwhelming majority forecasted by most exit polls. Meanwhile, the INDIA coalition was leading in 227 seats. This significant deviation from the exit poll projections has triggered a sharp increase in volatility on Dalal Street.