Indian equity benchmark indices BSE Sensex and NSE Nifty closed 6 per cent lower on Tuesday (June 4) after staging a partial recovery in afternoon trade. At the time of the closing bell on the day of Lok Sabha election results 2024, Sensex was down 4,389.73 points, or 5.74 per cent, at 72,079.05, while Nifty settled 1,379.40 points, or 5.93 per cent, at 21,884.50.
During the highly volatile session, the indices tanked as much as 8 per cent after trends suggested a weaker mandate for the BJP-led National Democratic Alliance (NDA).
During Tuesday’s session, the BSE-listed companies collectively eroded around £300 bn, reducing the total market capitalisation below the £4,000 bn mark. Both Sensex and NSE witnessed the biggest single-day fall in four years.
Public sector undertaking (PSU) stocks were worst affected in today’s sell-offs, with all PSE and Central Public Sector Enterprises (CPSE) constituents witnessing a downfall. Fast-moving consumer goods (FMCG) stocks lent support to the markets.
GIFT Nifty, an early indicator for Sensex and Nifty, traded at a low of as much as 1,400 points.
India VIX, Volatility Index or Fear Index, breached the 30 mark after falling near 15 per cent in the previous session. On the BSE, 26 out of 30 stocks were trading in red, while 42 of 50 stocks on Nifty50 were trading in red.
Shares of Adani Enterprises and Adani Ports crashed, dropping by 15% and 20%, respectively. This marks their worst single-day decline since February 2023. Other companies within the Adani Group also saw notable decreases in their stock prices. Adani Green, Adani Energy Solutions, and Adani Power witnessed declines ranging between 16% to 19%.
Adani Total Gas and Adani Wilmar also experienced losses, but to a lesser extent, with decline of 15.6% and 8.3%, respectively.
The rupee tumbled 45 paise to close at 83.59 against the US dollar due to a decline in equity markets. At the interbank foreign exchange market, the local unit opened weak at 83.25 and oscillated between a high of 83.23 and a low of 83.59 against the US dollar. The dollar index, which measures greenback against a basket of six currencies, is up 13 per cent at 104.70.
