Nifty Deepens Loss With Over 5% Crash As BJP Seems Shy Of Scoring Majority On Its Own

The benchmark indices Nifty 50 and Sensex crashed heavily on Tuesday morning ahead of the declaration of the results of the Lok Sabha elections. The indices were down close to 5% at the time of writing.

What Happened: As trends come in for the 2024 Lok Sabha elections, the Narendra Modi-led NDA looks set to clear the majority mark. However, early trends show that the fight might be much closer than earlier predicted. Nifty 50 crashed over 5% to hit an intraday low of 22,000.60. Sensex also fell over 5% to hit an intraday low of 72,337.34.

The BJP’s tally is currently seen at around 240, which is below the majority mark of 272. If the trends continue analysts predict the market could see a much steeper fall.

As most exit polls forecast a decisive victory for the Bharatiya Janata Party-led National Democratic Alliance (NDA) in the 2024 Lok Sabha elections, the Indian stock market benchmarks, Sensex and Nifty 50, soared nearly 4% to reach new record highs on Monday, June 3. The rally was driven by anticipated political stability and policy continuity.

The markets have mostly remained quiet on counting days historically. Except for the 2009 elections, the market has seen a change in the 1% range.

DateIndex% ChangeClosing ValueIntraday HighIntraday Low
May 13, 2004Sensex+0.77%5,399.475,487.345,131.03
May 13, 2004Nifty+0.37%1,717.51,750.301,625.10
May 16, 2009Sensex+2.53%12,173.4214,284.2113,479.39
May 16, 2009Nifty+17.74%4,323.154,384.303,673.15
May 16, 2014Sensex+0.90%24,121.7425,375.6323,873.16
May 16, 2014Nifty+1.12%7,203.007,563.507,130.65
May 23, 2019Sensex-0.76%38,811.3940,124.9638,651.61
May 23, 2019Nifty-0.69%11,657.0512,041.1511,614.50

Price Action: Nifty 50 was down 3.02% whereas Sensex was down 3.06% in early trade on Tuesday.

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