oppn parties Stock Markets React Strongly To NDAs Poor Performance

News Snippets

  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
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.