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Bloodbath on D-Street, Indices falls 8% each

4 Jun 2024 , 01:30 PM

The global financial landscape witnessed a significant downturn as key indexes experienced their sharpest decline since March 2020. This drastic shift followed the release of exit polls projecting a substantial victory for the BJP-led alliance in India’s lower house elections. Investors, grappling with uncertainty, reevaluated their positions amid concerns over the potential implications of this political outcome and the broader economic context.

Asian markets, closely linked to developments in the region’s largest economy, reacted swiftly to the news. The anticipation surrounding India’s official election results contributed to a sense of unease among global investors, who scrutinized the potential ramifications for economic policies and regional stability.

Simultaneously, attention turned to the United States, where signs of economic vulnerability emerged. Manufacturing activity, a cornerstone of the U.S. economy, showed further signs of weakness, prompting speculation about the sustainability of its ‘exceptionalism.’ This term, often used to describe the resilience and dominance of the U.S. economy, now faced scrutiny as uncertainties loomed.

Within India’s domestic market, the repercussions of the election projections were profound across various sectors. The Public Sector Undertaking (PSU) Bank index led the downturn, plummeting by over 17%. This decline was mirrored in other key sectors, including Oil & Gas, Metal, Realty, Financial Services, and Banking, all of which witnessed losses exceeding 8%.

The broader market indices, reflecting the depth of the downturn, painted a grim picture. The BSE SmallCap index recorded a significant decline of 7.36%, while the BSE MidCap index experienced a staggering crash of 9.32%. These figures underscored the widespread apprehension among investors, who sought stability amidst the turmoil.

Amidst the sea of red, only a handful of stocks managed to maintain their footing. Companies such as Hindustan Unilever, Britannia Industries, Nestle India, Cipla, and Sun Pharma bucked the trend, trading positively despite the prevailing market sentiment. Conversely, others, including Adani Ports & SEZ, Adani Enterprises, ONGC, Power Grid Corp., and Coal India, found themselves among the top losers, grappling with the fallout of the market’s downturn.

Related Tags

  • bloodbath
  • BSE
  • Mid Market News
  • nifty
  • NSE
  • sensex
  • stock market news
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