General Elections 2024 Results: PSU stocks tumble as early trends show mixed results; BSE PSU down 8%
Optimistic exit polls led to a surge in markets, but sentiment soured as actual election results counting showed mixed trends. Nifty 50 and Sensex plunged. PSU stocks bore the brunt of the market turmoil, with the S&P BSE PSU index plunging nearly 8% in today's trade.
Following a strong surge in the preceding session, driven by optimistic exit polls forecasting a clear victory for the BJP in the Lok Sabha elections, market sentiment soured as the actual election results revealed a mixed trend on Tuesday morning.
The contrast between the exit poll projections and the ongoing vote counting, which indicated varied outcomes, tempered investor confidence, prompting a more cautious approach in the market. Despite initial excitement, the uncertainty surrounding the election outcome introduced volatility, compelling investors to reevaluate their positions and adapt their strategies accordingly.
Against the backdrop of current events, the Nifty 50 relinquished all of Monday's gains, plummeting 3.75% in today's intraday trade to reach a low of 22,389 points, while the Sensex also experienced a significant downturn, dropping nearly 3% during the trading session to hit a daily low of 74,234 points.
PSU stocks bore the brunt of the market turmoil, with the S&P BSE PSU index plunging nearly 8.14% in today's trade to 20,701, wiping out all gains from Monday. At present, all 56 constituents of the index are trading in the red, with SJVN leading the losses with a decline of 10%, followed by HUDCO with a 7% drop.
Other stocks, including Ircon International, GAIL (India), NHPC, Bharat Dynamics, General Insurance Corporation, National Aluminium Company, REC, Union Bank of India, Punjab National Bank, UCO Bank, Bank of Maharashtra, Bank of Baroda, Life Insurance Corporation, and Bharat Heavy Electricals, are all experiencing declines ranging from 5.5% to 7%.
Furthermore, the Nifty PSU bank index witnessed a nearly 7% tumble, while the Nifty PSE and Nifty CPSE indices are trading with drops of 6.90% and 6.77%, respectively.
Likewise, BSE Power also erased the majority of its Monday gains and is trading with a drop of 6.13%.
Meanwhile, the BJP-led NDA on Tuesday surged ahead with leads in more than 200 parliamentary seats out of 350 for which trends were available, with the opposition INDIA bloc ahead in 120, according to television reports.
On Tuesday, the BJP-led NDA surged ahead with leads in over 200 parliamentary seats out of the 350 for which trends were available, while the opposition INDIA bloc led in 120 seats, according to reports from television channels.
The previous day, the BSE benchmark witnessed a remarkable surge, gaining 2,507.47 points, or 3.39%, and settling at a new closing peak of 76,468.78, marking its most substantial single-day increase in three years. Throughout the day, the barometer skyrocketed by 2,777.58 points, or 3.75%, to achieve a record intra-day high of 76,738.89.
Similarly, the NSE Nifty experienced significant gains, climbing 733.20 points, or 3.25%, to close at 23,263.90. In intra-day trading, it surged by 808 points, or 3.58%, to establish a fresh all-time high of 23,338.70.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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