Bloodbath On D-Street, Investors Lose Rs 9 lakh Crore In 15 minutes As Sensex Crashes 2,800 Points; Adani Group Stocks Crash, Shares Fell By 17%, Sank ₹1.5 lakh Crore.
D-Street opened today apprehensive and less cheerful due to a marked difference in election results compared to the exit polls.
As investors adopted a risk-averse stance ahead of the Lok Sabha election results announcement later in the day, the Sensex opened over 1,600 points lower on Tuesday, dragged down by heavyweights Reliance Industries and financial stocks.
By 9:20 am, the BSE Sensex was trading 2,800 points, or 3.66%, lower at 73,669.28.
The Nifty50 had dropped 809 points, or 3.6%, to trade at 22,409; at the same time, the volatility gauge, India VIX, spiked 20% to 25 levels.
The market capitalization of all listed companies on the BSE declined by Rs 8.78 lakh crore to Rs 417.13 lakh crore.
Within the Sensex pack, Reliance Industries and HDFC Bank alone contributed to a 565-point decline in the index. Other stocks dragging the index down included L&T, SBI, ITC, NTPC, and Power Grid.
Despite this, earlier exit polls projected a significant win for Modi, which led to markets soaring to all-time highs on Monday as expectations of sustained economic growth buoyed investors.
Meanwhile, Modi’s Bharatiya Janata Party-led NDA alliance surged to early leads, pulling ahead in more than 290 seats out of the total 543 in the lower house of parliament.
“With the 733-point rally in the Nifty yesterday, the market has already priced in a clear win for the NDA and a majority for the BJP. Only a dramatic deviation from this expected outcome will cause a major market shift,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Investors need not rush to buy today even if the results confirm the exit polls. Remain invested in large caps and consider some profit booking in small caps,” Vijayakumar suggested.
Adani Group Stock Crash
Following the sharp dip in the markets today due to election results contrary to the exit polls, the shares of Adani Group companies have especially crashed.
However, experts say that any decision should be taken only after the election results. At 9:45 am the group’s market cap decreased by Rs 1.5 lakh crore.
Shares of Adani Group companies plunged by Rs 1.5 lakh crore – Adani Green -17 per cent, Adani Energy -13 per cent, Adani Enterprises -10 per cent, Adani Power -13 per cent, NDTV -13 per cent.
There has been a sharp decline in the shares of Adani Group companies, and the market cap has come down from Rs 19.45 lakh crore to Rs 18 lakh crore.
48 stocks hit 52-week lows on BSE
As many as 63 stocks hit their 52-week highs today. On the other hand, just 48 shares hit their 52-week lows on BSE in early deals on Tuesday.
Market breadth in red
Out of 2889 stocks, 703 stocks were trading in the green. Around 2065 stocks were trading in the red while 121 stocks remained unchanged.
Capital goods, banking, auto shares top losers
All 19 sectoral indices were trading in the red on BSE today. Capital goods, banking and auto shares led the losses on Dalal Street today. BSE capital goods, bankex, and auto indices fell 3,257 points, 1874 pts and 1297 pts, respectively.
Upper circuits, Lower circuits
Around 57 stocks hit their higher circuits. On the other hand, 102 shares hit their lower circuit limits as the stock market zoomed in the early morning session.
Midcap, smallcap indices crash
BSE midcap index fell 1383 pts to 42,984 , signaling bearishness in the broader market. On the BSE, small cap stocks index slipped 1485 pts to 46,746 level.
FII-DII data
Foreign institutional investors bought Rs 6850.76 crore worth of equities on a net basis on Monday, while domestic investors bought Rs 1913.98 crore of shares, as per provisional NSE data.
Previous session
Sensex closed 2,507 points higher at 76,468 and Nifty ended 733 pts higher at 23,263. Investor wealth rose by Rs 13.79 lakh crore to Rs 425.91 lakh crore compared with a valuation of Rs 412.12 lakh crore recorded in the previous session on May 31.
