The Indian stock market saw a major plunge on Tuesday as Sensex hits down as low as 5,000 points. This sudden decrease resulted in investors collectively losing over Rs 26 lakh crore. The sharp decline in the Sensex, the main index of the BSE, had ripple effects in the financial sector, causing worries and uncertainty among market players.
The Major reason of this drop is the current political situation. As per the exit polls predictions BJP led by PM Modi is likely to be in power. However, the initial trends in the vote counting did not meet expectations, leading to market nervousness. Investors reacted cautiously by selling off holdings, which contributed to the sharp decline in market indices.
On the BSE, 26 out of 30 stocks were down, while 42 out of 50 stocks on the Nifty50 were in the negative territory. Adani Enterprises and Adani Ports shares saw significant declines, dropping by 15% and 20% respectively, marking their largest single-day fall since February 2023. These two stocks were the top losers in terms of percentage on the Nifty50 index, which itself experienced a 5% decline.
Also Read: Stock Market Drops as Vote Counting Begins: Adani Shares Hit Hard
Other companies in the Adani Group also witnessed notable drops in their stock prices. Adani Green, Adani Energy Solutions, and Adani Power recorded declines ranging from 16% to 19%. Adani Total Gas and Adani Wilmar also saw losses, but to a lesser extent, with declines of 15.6% and 8.3% respectively. The fall in the stock prices of these seven Adani Group companies came after a surge in their prices on Monday, following exit polls predicting a third consecutive term for the Modi government.