Today’s Stock Market: Nifty And Sensex Collapse As NDA Misses The 300-Seat Mark
Tuesday’s sharp decline in the stock market came as the Bharatiya Janata Party (BJP) was unable to establish a clear lead in the results of the ongoing national election.
By 11 AM, it was evident that the BJP alone will probably not be able to pass the halfway point, but the National Democratic Alliance (NDA) with its partners will undoubtedly form the government in the center. The prospect of a BJP-led coalition government has caused severe market trepidation and a precipitous drop in stock indexes.
The mood among investors has been noticeably negative since Tuesday’s commencement of trade. 3905.15 points were taken off the benchmark Sensex of the Bombay Stock Exchange. In a same vein, the Nifty 50 index had a significant decline, dropping 1061.05 points at 11 AM. A wide range of industries, including technology, finance, and the auto industry, were impacted by the stock market drop. The market decline was exacerbated by large corporations seeing sharp declines in share prices, such as Reliance Industries, HDFC Bank, and Infosys. Axis Bank, Bank of Baroda, PNB, SBI, IndusInd Bank, Bandhan Bank, and other shares fell up to 9% while the Bank Nifty index fell by 5%.
Analysts in the market blame political unpredictability for the sharp drop. Over the past ten years, the BJP has dominated Indian politics and is perceived as an industry-friendly party with policies that usually support market stability and economic progress. It is concerning that the BJP was unable to establish a clear majority on its own, which casts doubt on the ability to build a stable administration and carry out economic reforms. Expert on markets Sunil Shah said, “The market responded to the results of exit polls yesterday. The market is responding to the early patterns, which indicate that the lead or the gap is not that great. The market will continue to move erratically throughout day.
The present market volatility has been influenced by domestic economic data as well as international market movements and political unpredictability. Investor anxiety has been exacerbated by rising oil costs, worries about inflation, and recent slowdowns in the world economy. The market will continue to monitor the final count and the NDA’s ultimate majority figure, which is led by the BJP, as the day goes on.
