Sensex, Nifty nosedive as trends show less seats to BJP than exit polls

Benchmark equity indices Sensex and Nifty have tanked by over 5 per cent in the late morning trade of 4 June, as the initial trends in the vote counting showed BJP winning significantly fewer seats than predicted in exit polls.

The 30-share BSE Sensex dropped 3,311.87 points, or 4.33 per cent, to 73,156.91.

The NSE Nifty tumbled 1,102.55 points, or 4.73 per cent, to 22,161.35.

At the time, the BJP-led NDA was leading in 280 seats per the trends available for 528 seats, while the Congress also crossed the 100-mark in terms of leads, the Election Commission data showed.

Soon after, the BSE benchmark dived 4,131.44 points, or 5.40 per cent, to 72,337.34; Nifty slumped 1,263.3 points, or 5.43 per cent, to 22,000.60.

Among the 30 Sensex companies, the State Bank of India (SBI) tanked over 10 per cent, while Power Grid and NTPC plunged nearly 10 per cent.

Larsen & Toubro, Axis Bank, Tata Steel and Reliance Industries were the other big laggards.

The BJP was ahead in 234 seats at 10:30 a.m. The Congress-led INDIA bloc was leading in 200 seats—a performance that appeared much better than what was predicted in the exit polls.

Big change from yesterday

Foreign institutional investors (FIIs) had bought equities worth Rs 6,850.76 crore on Monday, 3 June, the day ahead of vote counting, according to exchange data.

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

US markets ended on a mixed note on Monday.

Global oil benchmark Brent crude declined 0.82 per cent to USD 77.72 a barrel.

The markets jumped sharply on Monday after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.

The BSE benchmark soared by 2,507.47 points or 3.39 per cent to settle at a new closing peak of 76,468.78 on Monday, marking its biggest single-day gain in three years.

During the day, the barometer jumped 2,777.58 points or 3.75 per cent to hit a record intra-day peak of 76,738.89.

The NSE Nifty climbed 733.20 points or 3.25 per cent to finish at 23,263.90. During the day, it soared 808 points or 3.58 per cent to hit a fresh intra-day all-time high of 23,338.70.