oppn parties Stock Markets React Strongly To NDAs Poor Performance

News Snippets

  • Supreme Court stays Karnataka HC order blocking operations of Kannada news channel Power TV. Says right to free speech must be "zealously protected" by courts
  • Opposition slams Centre for Samvidhan Hatya Diwas, says the Constitution is being murdered on daily basis under the present BJP government
  • Centre notifies June 25 as 'Samvidhan Hatya Diwas'. This was the date on which Indira Gandhi imposed the Emergency in 1975
  • Bengal moves SC against state governor for keeping 8 bills pending
  • Mamata Banerjee meets Uddhav Thackeray in Mumbai, says 'khela on' and promises to campaign for his party in the Maharashtra assembly elections
  • Stars and eminent persons from across the globe attend the wedding of Anant Ambani with Radhika Merchant at the Jio World Convention Centre in Mumbai
  • Controversial IAS trainee Puja Khedkar faces dismissal from service if her quato and disability claims are found false
  • SC says stay on bail should be in rare cases like terrorism or where order is perverse otherwise personal liberty and Article 21 will go for a toss
  • Supreme Court says judicial review of arrests by ED is necessary to check improper exrecise of power to arrest
  • Supreme Court grants interim bail to Arvind Kejriwal in the money laundering case in Delhi liquor policy case but he will remain in jail as he is under CBI detention in the corruption case in the same scam
  • Retail inflation rises to 5.1% in June, the highest in 4 months
  • Government to avoid merger of BSNL-MTNL. Instead, MTNL's operations will be shifted to BSNL to give the latter an all-India presence
  • Women's U-19 Asia Cup: India to clash with Pakistan on July 19
  • Paris Olympics badminton draws: P V Sindhu in easy group but gets a tough draw later while H S Prannoy and Lakshya Sen might clash in pre-quarter finals
  • After two consecutive wins, India look to seal series when they meet Zimbabwe in the 4th T20 today
Finance minister Nirmala Sitharaman presenting her 7th straight budget in Parliament today
oppn parties
Stock Markets React Strongly To NDAs Poor Performance

By Sunil Garodia
First publised on 2024-06-04 14:03:06

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

From the highest single day gain to the highest single day loss in 24 hours, the stock markets witnessed a flip-flop of epic proportions mirroring the glee on exit poll predictions and the gloom of the actual results. While the Sensex had jumped by nearly 2800 points intra-day on Monday in the exit polls-led euphoria, it slid 6235 points intra-day on Tuesday as the trends started coming in and showed that BJP was suffering losses almost everywhere before recovering by nearly 2000 points in closing trades to end at 72079. The Nifty also followed the same pattern. It went down a record 1982 points intra-day but recovered to close at 21884 or 1379 points lower. Both the indices fell more than 5% in the bloodbath following the results.

The biggest reason for the massacre and the return of the bears was that the BJP failed to get a simple majority on its own, which means that it will be overly dependent on unreliable partners to provide a stable government. The market feels that it will be boxed in and will not be able to carry out necessary reforms which it could have if it had got a majority on its own. Also, the wafer thin majority for the NDA and the excellent performance by the INDIA bloc has also raised doubts whether the NDA will be able to last 5 years. At one time during the counting process, it seemed that the country was headed towards a hung parliament and panic set in. But later, the NDA was able to secure a simple majority and a semblance of sanity returned to the market.

These are choppy times. Some shares have fallen too much and maybe it is the ideal time to buy them. Those investors who booked profits in closing trades on Monday, when the indices were at their peak, must look to invest again at the lower prices. The markets will recover - but it will take time. It is a big shock for the market to see the NDA slip from the expected 370-380 seats to under 300 seats. Although there is no immediate risk that policy continuity will be affected, the situation has become fluid and the markets will wait and watch before moving ahead.