oppn parties Stock Markets React Strongly To NDAs Poor Performance

News Snippets

  • A chopper, due to pick up a NCP leader in Pune, crashed near the city killing three persons including two pilots and a maintenance engineer
  • Chargesheet filed in the Hathras stampede case but Bhole Baba not mentioned
  • Apple to make AirPods in India with a focus on exports
  • GST panel considers lowering the slab rate to 5% on many items of mass use, including medicine
  • Stock markets likely to open lower today due to escalation of hostilities in the Middle-East
  • India U-19 beat Australia U-19 by 2 wickets in a thrilling match at Chennai
  • Women's World T20: Starts today in UAE, India plays its first match on Friday against New Zealand
  • Irani Trophy: Sarfaraz Khan, ignored in the Tests versus Bangladesh, hits a majestic 221 not out for Mumbai against Rest of India
  • Kanpur Test: India race to 7-wicket victory over Bangladesh, seal series 2-0
  • Noted actor Mithun Chakraborty, winner of three national awards for acting, to be bestowed the Dada Saheb Phalke award for 2024
  • MUDA case: ED launches probe against Siddaramaiah for possible money laundering
  • SC invokes its special powers, asks IIT to admit Dalit student Atul Kumar who was denied admission for not depositing the fee in time
  • SC questions the hurry of Andhgra CM Chandrababu Naidu going public over Tirupati prasadam contamination issue when there was no proof, asks |Gods to be kept free of politics
  • Infrastructure output falls in Auhust, the first time this has happened in three years
  • Out of court settlement between BharatPe and its co-founder Ashneer Grover brings to an end a 2-year legal battle. Company withdraws all charges against Deepak Gupta, the brother-in-law of Grover
Cocaine worth Rs 6.5cr seized in Delhi
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.