Mumbai: Benchmark equity indices Sensex and Nifty tanked over 8 per cent on Tuesday as the initial trend showed BJP winning lesser number of seats than predicted in exit polls. The 30-share BSE Sensex nosedived 6,234.35 points or 8.15 per cent to 70,234.43 in the afternoon trade. The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45.
Among the 30 Sensex companies, State Bank of India tanked over 16 per cent, while Power Grid and NTPC plunged nearly 15 per cent.
Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries were the other big laggards. Early trends from the counting of votes on Tuesday threw up disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana and Rajasthan although it is expected to form the government with about 290 seats.
Foreign Institutional Investors (FIIs) bought equities worth Rs 6,850.76 crore on Monday, 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. 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.
Biggest crashes in Indian stock market
- On 23.03.2020, Sensex dropped 3934 points. The fall came a day after the government announced a Janta Curfew on March 22 and Prime Minister Narendra Modi in a series of tweets suggested the beginning of a long battle against Covid-19.
- On 12.03.2020, Sensex dropped 2919.26 points. Stocks plunged after the WHO described the Covid outbreak as ‘global pandemic’. That very day, India confirmed its first Covid death in Karnataka.
- On 16.03.2020, Sensex dropped 2713.41 points. Stocks fell following an emergency rate cut by the US Federal Reserve and similar pledges by central banks globally raised fears that the Covid impact on the economies would be worse than what was initially thought.
- On 24.02.2022, Sensex dropped 2,702.15 points when Russia declared war against Ukraine.
- On 12.05.2020, Sensex dropped 2002.27 points. The drop came amid concerns over a US-China spat on the origin of the coronavirus.
- On 09.03.20, Sensex dropped 1941.67. Price war between major oil producers Saudi Arabia and Russia sent crude oil prices tumbling 33 per cent in a single day.
- On 26.02.21, Sensex dropped 1939.32. A steep hike in US treasury yields took the global markets by surprise on Friday as investors dumped equities for bonds.Geo-political tensions on the back of the US air strike in retaliation for a rocket attack in Iraq earlier this month cautioned investors.
- On 18.03.2020, Sensex dropped 1709.58 points. Threat of economic fallout emananting from pandemic Coronavirus (Covid-19) continued to weigh on investor sentiment. Moreover, statements by global brokerages Morgan Stanley and Goldman Sachs that the coronavirus has triggered a global recession spooked investors further.
- On 26.11.21, Sensex dropped 1687.94 points. Nervousness on the new coronavirus variant and expectations of the US increasing the pace of tapering has led to recent market weakness, said analysts.
- On 09.11.16, Sensex dropped 1689points. Analysts believed the crash was due to the crackdown on black money by the Indian government, resulting in frantic selling.
- On 24.08.2015, Sensex dropped 1624.51 points. Fears about a potential slowdown in the Chinese economy. This was due to the devaluation of the Chinese Yuan a few weeks prior to the crash causing a fall in the rates of other currencies and high selling volumes of stocks. In the Indian markets, this was worsened by a poor monsoon season in India and disappointing earnings in the first quarter of the Fiscal.
- On 18.01.2024, Sensex dropped points. 1600 Sensex records worst daily performance in 18 months due to the decline in HDFC Bank shares. The HDFC Bank report card had a spillover effect on other banking stocks, with Nifty Bank crashing along with mid and smallcap indices. Rising bond yields in the US contribute to the negative sentiment in the global market.
- On 24.01.22, Sensex dropped 1545.67 points. Asian share markets slipped as investors braced for a Federal Reserve meeting at which it is expected to confirm it will soon start draining the massive lake of liquidity that has supercharged growth stocks in recent years.
- On 28.02.2020, Sensex dropped1448.37 points. Rapid outbreak of coronavirus across geographies and the consequent economic fallout.Further, incessant selling by foreign portfolio investors (FPIs) spooked retail investors.
- On 21.01.2008 -1408.35 A change in the global investor confidence. The widespread fear that the economy of the USA might go into recession. A drop in the interest rates in the US. Volatility in the commodity markets. Foreign Institutional Investors and Hedge Funds selling shares from emerging markets and investing in stable developed markets. (With Agency Inputs)
