Stock Market Drastically Falls as Sensex Drops to 4389 Points

No one imagined that the stock market prediction of the expert would go wrong until Tuesday morning when the voting counting started at 8 a.m. The early morning voting count signalled that the NDA and Modi government may not cross 400 seats as the exit polls predicted, which led to a drastic fall in the Bombay Stock Exchange (BSE) Sensex and the National Stock Exchange (NSE) Nifty50 performance at Dalal Street since March 2020.

Out of the 2889 stocks, only 703 were in green, and top-leading stocks like NTPC, SBI, PNB, L&T Power Grid, Tata Steel, and IndusInd were all in red, leading to a fall of 4.86 per cent. After today’s volatile market result from the Nifty 50 index, 43 stocks are in red and only 7 are in green.

The biggest Nifty gainer is Hindustan Unilever Ltd. with 5.97 per cent or 140.70 points, followed by Nestle India Ltd. with 3.09 per cent and Britannia Industries Ltd. with 3.05 per cent. Adani Ports & Special Economic Zone Ltd. of Gautam Adani had the biggest loss, with a fall of 21.15 per cent on today’s market. This was followed by Adani Enterprise Ltd., with a decline of 19.32 per cent and Oil and Natural Gas Corporation Ltd., with a fall of 16.83%.

Which stocks to buy after the market crash?

The events unfolding in the stock market from Monday to Tuesday were unexpectedly volatile. On Monday, BSE Sensex and Nifty50 set new records, gaining 3% to reach ₹4,25,91,511.54. 

On Tuesday afternoon, the situation of the market slightly recovered after slipping to as low as 8 per cent. Finally, the Sensex closed today at 4,389.73 points, or 5.74 per cent lower at 72,079.05 and the Nifty at 1,379.40 points or 5.93 per cent lower at 21,884.50. This unexpected turn on the Dalal Street from Monday to Tuesday has raised multiple questions, particularly among new investors who entered the market post-COVID-19.

On the question of which stock to buy or when the market will rise, many analysts shared their opinions. Kranthi Bathini of WealthMills Securities claimed that the market situation may be worse on Wednesday if the NDA fails to win 300 seats. In this volatile and cynical Dalal Street situation, Vinnaayak Mehta, the founder of the Infinity Group, suggested that young and inexperienced investors should not make any drastic investment decisions at this stage. 

Amit Geol, the co-founder & chief global strategist of Pace 360, recommended making purchases only at reasonable valuations. As a result, the consensus among many analysts is that retail investors should not rush to buy amidst this sudden market downturn and should instead wait for the situation to stabilize.

The Unexpected 2024 Election Result Hits the Stock Market

The exceptional performance of the Bharatiya Janata Party in 2019 failed to replicate its success in the 2024 Lok Sabha elections, as the Congress-led alliance known as INDIA has made surprising gains in Uttar Pradesh, where it is leading in 42 out of the 80 seats. The exit poll predictions, which anticipated Prime Minister Modi’s party securing 400 seats, ultimately proved to be inaccurate.

The unexpected outcome has had a significant impact on today’s stock market. The final results of the 2024 election are yet to be announced, as 214 out of the 543 constituencies are still awaiting the declaration of the final results. According to the latest report from the Election Commission of India web portal, the Bharatiya Janata Party (BJP) party has already won 161 seats and is leading in 79 seats, while the Indian National Congress (INC) won 65 seats and is leading in 34 seats. The two leading parties are followed by the Samajwadi Party (SP) with 24 wins and the All India Trinamool Congress (AITC) with 29 seats.