Скачать или смотреть Indian Stock Market Crashes Due To Tight Election Race.

The Indian stock market faced a steep decline, wiping out nearly 20 lakh crore in investor wealth within the first 20 minutes of trading on Tuesday, June 4. This sharp drop reduced the overall market capitalization of BSE-listed companies to approximately ₹406 lakh crore by 9:35 am, down from nearly ₹426 lakh crore at the close of the previous session.

The dramatic sell-off was triggered by early indications that the Lok Sabha election results might be much closer than the exit polls had anticipated. Both the Sensex and the Nifty 50 tumbled close to 4%, with the BSE Midcap and Smallcap indices recording even higher losses of up to 5% during the early trading hours.

Market analysts highlighted that the expectations of a strong majority for the National Democratic Alliance (NDA), as suggested by exit polls, were already priced into the market. The emerging trends, which suggested a possible deviation from these forecasts, led to widespread panic among investors.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained, "The steep fall is due to the results so far falling short of the exit polls, which the market discounted yesterday. If BJP doesn't get a majority on its own, there will be disappointment, as reflected in the market. Also, it is possible that Modi 3.0 may not be as reform-oriented as the market expected and may turn more welfare-oriented. This is getting reflected in the strength of FMCG stocks."

As the day progressed, the markets slightly recovered from their lows. By around 10:05 am, the Nifty 50 was down 2.07% at 22,782, while the Sensex had dropped 2.16% to 74,819. The overall market capitalization of BSE-listed firms stood at nearly 416 lakh crore at that time, reflecting some degree of stabilization after the initial shock. This volatility came after a session of robust gains, driven by expectations of a decisive NDA victory.

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