Online brokerage platform Zerodha recorded a staggering 34.5 million trading orders on the day of the Lok Sabha election results, coinciding with the worst stock market crash in four years.
What Happened: Zerodha co-founder Nithin Kamath revealed via a social media post on Tuesday that the company’s flagship trading and investment platform, Kite, experienced an unprecedented surge in activity. Investors placed 34.5 million orders, added over ₹8000 crore funds, and logged in 8 million times, generating 2 billion hits on the platform.
This comes on the day when the Indian stock market experienced its worst crash in four years, with the S&P BSE Sensex plunging by 4,389.73 points and the NSE Nifty50 dropping 1,379.40 points. This resulted in a loss of ₹29.9 lakh crore in market capitalization of all listed companies on the BSE.
Among the 30 companies in the Sensex, the top decliners included State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC, and HDFC Bank.
“The short-term trend of Nifty is highly volatile with negative bias. Immediate support is placed for Nifty around 21250 levels (20-day EMA). Once election result volatility settles down, the market could find direction for the near term. There is a possibility of an upside bounce in the Nifty from near 21250-21000 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Why It Matters: The market crash comes as the Bharatiya Janata Party-led National Democratic Alliance (NDA) in the 2024 Lok Sabha elections failed to meet expectations. The previous day, the Sensex and Nifty 50 had surged nearly 4% to reach new record highs, fueled by expectations of political stability and policy continuity backed by exit poll predictions.
Public sector stocks on result day nosedived as unexpected election results contradicted exit polls’ predictions of an easy win for the BJP. State Bank of India closed 13.37% lower wiping ₹1 lakh crore of investor wealth.
Shares of all 10 Adani Group companies were in the red too. Gautam Adani-led Adani Enterprises Ltd ended the day 19.07% lower, and Adani Ports and Special Economic Zone Ld closed 21.40% down, among others.
On Monday, Zerodha users had faced a technical glitch the previous day, unable to execute their trades as markets opened at record highs after exit polls predicted victory for the incumbent BJP government.
Read Next: HUL Bucks The General Trend To Surge 6% As Markets Record Worst Day In 4 Years
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.