The stock markets took a drubbing as the counting of votes for the Lok Sabha elections commenced on Tuesday, with early trends indicating that the Bharatiya Janata Party would be unlikely to secure the majority 272 seats on its own.
The disparity between the results and exit poll predictions sparked a selling spree in the domestic market after Monday’s rally.
The Sensex fell 4,389.73 points or 5.74 percent at 72,079.05, and the Nifty 50 fell 1,379.40 points or 5.93 percent at 21,884.50 at closing.
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The stocks of Adani Group companies were particularly hit. Congress leaders have accused the BJP-led Union government of favouritism towards the Adani Group.
The stock of Adani Ports fell by 20%, Adani Energy Solutions by 19.80%, Adani Power by 19.76%, Ambuja Cements by 19.20% and Adani Enterprises by 19.13% on the BSE.
Gaurav Dua, senior vice president and head of capital market strategy at Sharekhan, told Al Jazeera: “Obviously the early results trends are not positive for the markets. But to be sure, as long as the BJP/NDA manages the 272 seats required to form the government, the drop will be only a short-term reaction overall.”
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