![Sensex Plummets as Election Results Cause Market Turmoil](https://media.newstracklive.com/uploads/business-news/stock-market/Jun/04/big_thumb/sensex_Nifty_665ee2cc5f659.jpeg)
The Indian stock market experienced a severe downturn today as the Sensex plummeted by 4,200 points and the Nifty dropped by 5.4%. This sharp decline marks the worst fall since March 2020, erasing all of Monday's gains. The crash was triggered by exit polls predicting a significant victory for the BJP-led National Democratic Alliance (NDA) in the 2024 general elections.
Election Impact on Markets: TV channels reported that the NDA was leading in nearly 300 seats, well above the 272 needed for a simple majority in the 543-member Lok Sabha. The news caused market volatility to spike, with the volatility index reaching its highest level since March 2022, at 29.79.
Sector-Wide Decline: All sectors were hit hard. Bank stocks fell by 7.8%, the real estate sector dropped by 9.1%, and infrastructure stocks declined by 10.5%. Oil and gas stocks lost 11.7%, while state-run companies and banks saw declines of 17% and 16%, respectively.
Adani Group Hit Hard: Among the Nifty 50 index, Adani Enterprises and Adani Ports were the biggest losers, each falling by 19%. Other Adani group stocks also suffered, with declines ranging from 9% to 19%. This followed significant gains on Monday, when Adani group stocks had risen between 4% and 18% after exit poll results were announced.
Global Market Reaction: Asian share markets also retreated as global investors awaited India's official election results and grappled with concerns about the weakening U.S. manufacturing sector. The MSCI's broadest index of Asia-Pacific shares outside Japan fell by 0.4%, though it remains up 2.1% for the month.
Mixed Performance in Asia: Australian shares declined by 0.15%, while Japan's Nikkei index slipped by 0.11%. In contrast, Hong Kong's Hang Seng Index rose by 0.33%, and China's CSI300 Index increased by 0.23% after initially opening lower.
European Market Trends: Early European trading saw the Euro Stoxx 50 futures slip by 0.1% to 5,007, German DAX futures fall by 0.21% to 18,615, and FTSE futures decrease by 0.09% to 8,265.5.
Today's market turmoil underscores the significant impact that political developments can have on investor sentiment and market stability. As the final election results are awaited, markets remain on edge, reflecting the uncertainty and volatility associated with major political events.
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