Sensex, Nifty tank 3% amid early poll trends, profit booking
What's the story
Indian stock markets witnessed a substantial decline today. The Nifty 50 index saw a decrease of 3.03%, landing at 22,557 as of 9:30am today. Concurrently, the Sensex also fell by 3% to reach a level of 74,107. The market sentiment was influenced by the signals of a better-than-expected performance for the INDIA block, a coalition of opposition parties. As per early trends, PM Narendra Modi-led NDA is leading in over 272 seats.
Indices down
Profit booking also affecting market performanc
Today's massive decline presents a stark contrast to Monday's performance when both indices jumped over 3%, reaching record highs and marking their best session in 40 months. Apart from the election-related developments, the market also witnessed profit-booking at higher levels, which triggered selling pressure on Dalal Street. Today, Nifty Bank has crashed over 3% and volatility index, India VIX, has surged over 17%. Adani stocks have tumbled up to 11% while investors' wealth has erased by over ₹9 lakh crore.
Poll impact
Previous rally triggered by exit poll projections
The previous surge in the stock market was driven by exit polls projecting a likely two-thirds majority for the BJP-led alliance in the lower house. This prediction led to a significant jump of more than 3% in both Nifty 50 and Sensex indices, hitting record highs. The extent of the victory for the NDA and its impact on the stock market remains uncertain at this point.