BSE Sensex and Nifty 50 are witnessing bloodbath with both the benchmark Indian indices trading down over 8 per cent as early trends suggest the BJP-led NDA will not win by a huge margin as predicted in the exit polls.
In the early trading hours, both Sensex and Nifty today were down 2 per cent and now they were extending losses.
At 12:30 IST, Nifty 50 was trading down 8.30 per cent or 1,931.85 points at 21,332.05, while BSE Sensex was at 70,298.32, down 6,170.46 points or 8.07 per cent.
The stock market in India have been witnessing an overall sharp selloff.
Biggest single-day fall
The fall in Nifty 50 has been biggest in a single day since February 2022.
Investors’ lose Rs 21.5 lakh crore
The market capitalisation (mcap) of all listed companies on BSE plummeted by Rs 21.5 lakh crore to reach Rs 404.42 lakh crore on Tuesday.
The worst hit was Nifty PSU Bank index as it crashed by more than 11 per cent with all stocks in the index seeing double-digit losses.
Other PSU stocks like PFC, REC and BEL fell up to 20 per cent.
Will Sensex, Nifty continue to fall?
“If BJP doesn’t get majority on its own there will be disappointment and this is getting reflected in the market. Also it is possible that Modi 3.O may not be as reform-oriented as the market expected and may turn more welfare- oriented. This is getting reflected in the strength in FMCG stocks,” said VK Vijayakumar, Chief Investment, Strategist, Geojit Financial Services.
“The index has fallen by about 5 per cent due to a weaker trend for the NDA in the poll counting. The market, which had begun to price in a landslide victory for the NDA, is witnessing a significant correction due to margin calls, as retail investors were carrying heavily leveraged positions,” said Rupak De, Senior Technical Analyst, LKP Securities.
Is recovery in sight?
“Recovery looks possible once the trend moves in favor of the BJP winning the election comfortably,” De said, adding that “supports seem to be very fragile. Immediate support is visible at the psychological level of 22,000, below which the index might fall further towards 21,400-21,500.”
“All sectors witnessed a downturn, with the highest falls observed in PSU Banks, Nifty Energy, and Nifty Metals. Notably, PFC, REC, and all Adani stocks hit the lower circuit with a 20 per cent decline,” said Mandar Bhojane, Equity Research Analyst, Choice Broking.
“Post the sharp 1200 points fall, Nifty exhibited a volatile range between 21,800 and 23,350, creating a significant 1500+ point spread. The index formed a substantial bearish candle, with key support levels identified at 22,000 and 22,800. Should these levels fail to hold, the next supports are at 21,500 and 21,200. On the upside, Nifty needs to break above 22,800 and 23000 to regain strength and potentially surge to new all-time highs of 23,500 and 23,700,” Bhojane said.
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