Nifty Midcap 100 suffers sharp decline of over 6,000 points; BEL, Container Corp, SAIL plunge up to 28%

Market downturn in India as BJP's majority in Lok Sabha election comes into question, impacting investor confidence. The Nifty Midcap 100 index plunged 6,106 points, or 11.44%, to reach a two-month low of 47,246 points. Leading the declines were Bharat Heavy Electricals, which plummeted 28%.

A Ksheerasagar
First Published4 Jun 2024, 03:12 PM IST
The entire PSU sector took a hit, reflected in all PSU sectoral indices trading in the red with cuts exceeding 15%.
The entire PSU sector took a hit, reflected in all PSU sectoral indices trading in the red with cuts exceeding 15%.(Bloomberg)

The Indian indices across the board turned red, marking a stark contrast to the green wave experienced in the previous trading session. This significant drop in shares was attributed to unexpected changes in the political equation, contrary to the optimistic exit poll predictions.

Tuesday's Lok Sabha election counting raised doubts about the BJP securing a majority of 272 seats on its own, causing widespread concern among investors.

According to recent data, Indian Prime Minister Narendra Modi's alliance is on track for a majority in the ongoing general election vote count on Tuesday. However, the current numbers indicate that the margin of victory might be smaller than what exit polls had predicted, causing a market downturn.

Also Read: Markets down 5%: Here's how Nifty has performed on previous election result days

This political uncertainty has led to a sharp market downturn, with investors re-evaluating their positions in response to the unfolding political landscape. 

The shift in sentiment has underscored the market's sensitivity to political developments and the crucial role of stability in maintaining investor confidence. Apart from the front-line indices Nifty 50 and Sensex, which have dropped 7% each in today's trading session, mid- and small-cap stocks also took a large beating during the trade.

Down 6000 points

The Nifty Midcap 100 index plunged 6,106 points, or 11.44%, to reach an 11-week low of 47,246 points. Leading the declines were Bharat Heavy Electricals, which plummeted 28%, and Container Corporation of India, which saw a 25% drop in its shares. SAIL also fell by nearly 25%.

UCO Bank experienced a 20% decline, and other mid-cap stocks such as JSW Energy, Mazagon Dock Shipbuilders, and Hindustan Petroleum Corporation also saw significant drops. Additionally, HDFC Asset Management Company and LIC Housing Finance each declined by 14%.

Similarly, the Nifty Smallcap 100 index fell 12.46% in today's trade, with all stocks trading in the red. Jammu & Kashmir Bank led the decline, plunging 20%. 

Also Read: SBI share price tanks 19% amid stock market crash. Opportunity to buy?

Other notable losers included HUDCO, Titagarh Rail System, NALCO, Hindustan Copper, HFCL, NLC India, Central Bank of India, NCC, Chambal Fertilisers & Chemicals, Indian Overseas Bank, Ircon International, Gujarat Mineral Development Corporation, and CESC, all of which dropped between 12% and 20%.

Entire PSU basket turned into red

Meanwhile, the entire PSU sector took a hit, reflected in all PSU sectoral indices trading in the red with cuts exceeding 15%. Notably, Nifty CPSE was down by 20%, Nifty PSU Bank by 19.52%, Nifty PSE by 20% to hit a 2-month low, and S&P BSE PSU by 17.37%. Meanwhile, BSE Power also recorded a significant decline, tumbling over 13% amidst the market turmoil.

Also Read: India VIX soars over 40% as market frets over slim margin of BJP-led NDA

Investor concerns are mounting about the BJP securing a majority, potentially leading to uncertainty in the political landscape and resulting in a sharp drop in markets today.

Biggest intraday drop in 4 years 

Looking at the front-line indices, the Nifty 50 relinquished all of Monday's gains, plummeting 7.6% in today's intraday trade to reach a one-month low of 21,481 points. The index also witnessed one of the worst intraday drops in the last four years. 

The Sensex also experienced a significant downturn, dropping nearly 6% during the trading session to hit a daily low of 71,805 points.

"Long-term investors should look out for crashes and corrections like these as opportunities to add quality stocks on dips and build on their long-term portfolios. Nifty50 rebounded almost exactly from the 200-day EMA today, so that acts as a positive from the long-term trend point of view."

"Moreover, investors are also suggested to continue their SIPs or maybe double down on the investment amount. They should not think about stopping or withdrawing their funds after seeing this crash," said Vaibhav Jain, Head of Content & Education, Share. Market.

Also Read: Zomato, Nykaa, Paytm, other new-age tech stocks crash up to 17%

"The market, which had begun to price in a landslide victory for the NDA, is witnessing a significant correction due to margin calls as retail investors were carrying heavily leveraged positions," said Rupak De, Senior Technical Analyst, LKP Securities.

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 making any investment decisions.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess

News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:4 Jun 2024, 03:12 PM IST
HomeMarketsStock MarketsNifty Midcap 100 suffers sharp decline of over 6,000 points; BEL, Container Corp, SAIL plunge up to 28%

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,263.00176.00
    Chennai
    74,699.00757.00
    Delhi
    74,989.00975.00
    Kolkata
    74,190.00-187.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.10
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts