Stock market today: Investors lose ₹31 lakh crore as election race gets tighter than what exit polls predicted

A sharp selloff in the Indian stock market resulted in a significant loss for investors, reducing their wealth by approximately 31 lakh crore on Tuesday, June 4.

Nishant Kumar
Updated4 Jun 2024, 04:52 PM IST
The Indian stock market witnessed an overall sharp selloff after early trends showed that the election result could be tighter than exit polls had predicted. (Image: Pixabay)
The Indian stock market witnessed an overall sharp selloff after early trends showed that the election result could be tighter than exit polls had predicted. (Image: Pixabay)(Pixabay)

A sharp selloff in the Indian stock market resulted in a significant loss for investors, reducing their wealth by approximately 31 lakh crore on Tuesday, June 4. The overall market capitalisation (mcap) of companies listed on the BSE plummeted to nearly 395 lakh crore on Tuesday against nearly 426 lakh crore at the previous session's close.

The Indian stock market witnessed an overall sharp selloff after early trends showed that the election result could be tighter than exit polls had predicted.

Benchmarks the Sensex finally closed with a massive loss of 4,390 points, or 5.74 per cent, at 72,079.05, while the Nifty 50 ended with a cut of 1,379 points, or 5.93 per cent, at 21,884.50.

Track live market updates here

Experts pointed out that the Indian stock market had already factored in a significant majority for the NDA, as exit polls had predicted. However, early trends showed that the results may not align with market expectations, which seems to have spooked investors.

"This sharp fall in the Indian stock market is mainly due to the disappointing early trends in the Lok Sabha Election results. This trend is not in sync with the exit poll. This has put some panic in the market," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Also Read: Stock market today: Nifty 50 records biggest single-day fall in over 4 years; Sensex crashes over 4,000 points

“The steep fall is due to the results so far falling short of the exit polls, which the market discounted yesterday. If BJP doesn’t get a majority on its own, there will be disappointment, as reflected in the market,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

"Also, it is possible that Modi 3.0 may not be as reform-oriented as the market expected and may turn more welfare-oriented. This is getting reflected in the strength of FMCG stocks," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Also Read: Why is Indian stock market falling today? — explained

Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies, said that the market confidence after the exit poll was also premised on these polls having been more or less accurate forecasters in the past two decades, save in 2004, for the Lok Sabha polls.

"This confidence had been shaken in the first half of Tuesday. We will wait and see what happens in the second half," Holland said.

Also Read: Stock market today: Nifty 50 falls to near 3-month low as possibility of no majority for BJP haunts investors

Deven Choksey of DRChoksey Finserv, observed that the market is reacting early, with just two rounds of counting done, while due to physical counting under VVPAT, the process is slower this time.

"Most channels are impulsive in reporting numbers and setting the narratives but without considering the number of rounds for which the counting took place. I feel the market will once again get steady, and the same high beta stocks will be bought," said Choksey.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult 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
₹295 Cr

$23 B

$65 M

3.36%

$65.47 B

$2.5 M

₹80 Cr

1.4%

₹773 Cr

₹2,705 Cr

₹1 Cr

₹14,370 Cr

₹5.74 T

First Published:4 Jun 2024, 04:52 PM IST
HomeMarketsStock MarketsStock market today: Investors lose ₹31 lakh crore as election race gets tighter than what exit polls predicted

Most Active Stocks

Tata Steel

166.80
03:59 PM | 15 JUL 2024
-1.9 (-1.13%)

NTPC

385.65
03:58 PM | 15 JUL 2024
8.4 (2.23%)

Bank Of Baroda

258.60
03:53 PM | 15 JUL 2024
7.85 (3.13%)

Bharat Electronics

331.25
03:55 PM | 15 JUL 2024
-2.05 (-0.62%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Indian Overseas Bank

68.33
03:41 PM | 15 JUL 2024
4.68 (7.35%)

M M T C

94.92
03:40 PM | 15 JUL 2024
6.31 (7.12%)

NLC India

297.75
03:57 PM | 15 JUL 2024
18.6 (6.66%)

IDBI Bank

91.54
03:58 PM | 15 JUL 2024
5.6 (6.52%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,771.000.00
    Chennai
    73,827.000.00
    Delhi
    73,972.000.00
    Kolkata
    74,045.000.00

    Fuel Price

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