The Indian stock market witnessed a significant downturn today as investor concerns grew over the uncertain majority in the Lok Sabha elections. The PSU sector saw major losses, with stocks like PFC, REC, and RVNL falling by up to 20%. The Nifty PSE index hit a 2-month low, reflecting the overall sentiment in the market.
The Sensex and Nifty 50 witnessed a steep fall as the NDA led below 300 seats, contrary to exit poll predictions. The India VIX soared over 40% as the market fretted over the slim margin of the BJP-led NDA. This led to the worst decline in the markets in four years.
New-age tech stocks like Zomato, Nykaa, and Paytm also took a hit, with some stocks crashing up to 17%. The market reaction starkly contrasted with the optimistic projections made by Prime Minister Narendra Modi and Union Home Minister Amit Shah last month.
As the market turmoil ensued, experts weighed in on strategies for long-term investors to weather the storm and seize opportunities amidst the turbulence. Defence stocks tumbled 11%, while the Nifty Oil & Gas index cracked 10% on Election Results day.
Despite the market volatility, there were some positive stories as well. Affordable Robotic & Automation, a microcap robotics company, turned into a profit machine with a staggering 197% increase in profit after tax in FY24. Additionally, crude oil prices dropped nearly 8% in just 5 sessions to hit a 4-month low on worries over higher supply.
Overall, the Indian stock market experienced a rollercoaster ride today, with significant losses in some sectors and positive developments in others. Investors are advised to stay informed and cautious during these uncertain times.
