Sensex and Nifty 50: On the expiry day of May futures and options (F&O) contracts, which fell on Thursday, May 30, the Indian stock market saw a massive selloff. The Lok Sabha election 2024 results, which are scheduled to be declared on June 4 of the following week, have market investors nervous.
Political anxiety never goes away since the previous few days have seen a rise in ambiguity over the election’s outcome. Beginning on June 4, the vote counting process will begin, and the election’s final phase will take place on Saturday, June 1. Afterwards on the same day, the election results might be known.
Although the majority of observers predict that the BJP-led NDA would win reelection, some do not believe there is a clear sign of a sizable majority for the coalition.
According to Avinash Gorakshkar, Head of Research at Profitmart Securities, “the market is still unconvinced about the kind of government formed after the Lok Sabha Polls” after six stages of the elections.
The recent collapse in the Indian stock market has also been attributed to other causes, including as weak global cues, rising US bond yields, geopolitical concerns, and dwindling expectations of early rate reductions.
The Nifty 50 finished the day at 22,488.65, down 216 points, or 0.95 percent, while the Sensex finished the day at 73,885.60, down 617 points, or 0.83 percent.
In the mid and small-cap categories, the losses were even more severe, with the BSE Midcap and Smallcap indices declining 1.21 percent and 1.33 percent, respectively.
Investors lost almost ₹4.4 lakh crore in one session when the total market capitalization of the companies listed on the BSE fell to about ₹410.7 lakh crore from over ₹4,15.1 lakh crore in the previous day.
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