Lok Sabha Elections 2024 results: Sensex, Nifty tank in early trade as initial counting showed mixed trend

Benchmark equity indices Sensex and Nifty plunged in early trade on Tuesday due to heavy profit-taking following a substantial rally in the previous session, as initial vote counting for the Lok Sabha polls indicated mixed trends.

The 30-share BSE Sensex dropped 1,715.78 points to 74,753 in early trade. The NSE Nifty fell 539.1 points to 22,724.80.

Later, the BSE benchmark faced a sharper decline, falling by 2,623.91 points to 73,844.36, while the Nifty was down 617.45 points at 22,646.45.

Among the 30 Sensex companies, Larsen & Toubro, Power Grid, NTPC, State Bank of India, Reliance Industries, and HDFC Bank were the biggest laggards.

Sun Pharma and Nestle were the only gainers.

As per television reports, the BJP-led NDA on Tuesday had leads in over 200 parliamentary seats out of 350 for which trends were available, with the opposition INDIA bloc ahead in 120.

Foreign Institutional Investors (FIIs) bought equities worth Rs 6,850.76 crore on Monday, according to exchange data.

On the election results day, the Indian rupee opened weaker at 83.23 against the US dollar. The rupee closed on Monday at 83.14 against the American currency. The dollar index, which measures strength of greenback against six global currencies, is down marginally at 104.08.

In Asian markets, Seoul, Tokyo, and Shanghai were trading lower, while Hong Kong saw gains.

US markets ended on a mixed note on Monday.

Global oil benchmark Brent crude declined by 0.68 percent to USD 77.83 a barrel.

How markets reacted to exit polls predicting 3rd term for Modi government

On Monday, after weekend's exit polls predicted PM Modi's hat-trick, Sensex and Nifty zoomed more than 3 per cent, recording their biggest single-day gain in three years and closing at lifetime highs.

The 30-share BSE Sensex surged by 2,507.47 points or 3.39 percent, closing at a new peak of 76,468.78 points. Twenty-five of its constituents ended in the green, while five ended in the red. Throughout Monday, the barometer reached a record intra-day high of 76,738.89, jumping by 2,777.58 points or 3.75 percent.

Meanwhile, the NSE Nifty rose by 733.20 points or 3.25 percent, settling at 23,263.90. It also hit a fresh intra-day all-time high of 23,338.70, soaring by 808 points or 3.58 percent.

The market capitalisation of BSE-listed companies jumped to Rs 4,25,91,511.54 crore (USD 5.13 trillion). As many as 2,346 stocks advanced while 1,615 declined and 154 remained unchanged on the BSE. The market capitalisation of NSE-listed companies stood at Rs 422.48 lakh crore (USD 5.09 trillion).

Monday had marked the biggest single-day gains for Sensex and Nifty since February 1, 2021, when they jumped nearly 5% following the budget presentation. Notably, similar significant increases were observed on May 20, 2019, after exit polls anticipated a significant victory for the BJP-led NDA in the 2019 general elections.

Here's a look at market trends on result day in the last four Lok Sabha elections:

May 13, 2004: Sensex and Nifty rose by 0.77 percent and 0.37 percent, respectively, closing at 5,399.47 and 1,717.5. Sensex recorded an intraday high of 5,487.34 and an intraday low of 5,131.03, while Nifty saw an intraday high of 1,750.30 and an intraday low of 1,625.10.

May 16, 2009: Sensex surged by 2.53 percent, while Nifty skyrocketed by 17.74 percent, closing at 12,173.42 and 4,323.15, respectively. Sensex reached an intraday high of 14,284.21 and an intraday low of 13,479.39, whereas Nifty hit an intraday high of 4,384.30 and an intraday low of 3,673.15.

May 16, 2014: Sensex and Nifty saw a marginal increase, rising by 0.90 percent and 1.12 percent, respectively, to close at 24,121.74 and 7,203. Sensex recorded an intraday high of 25,375.63 and an intraday low of 23,873.16, while Nifty had an intraday high of 7,563.50 and an intraday low of 7,130.65.

May 23, 2019: Both Sensex and Nifty experienced a slight decline, dropping by over 0.76 percent and 0.69 percent, respectively, closing at 38,811.39 and 11,657.05. Sensex's intraday high was 40,124.96 and intraday low was 38,651.61, while Nifty's intraday high and low were 12,041.15 and 11,614.5, respectively.