Sensex, Nifty nosedive as initial trends predict lesser seats for BJP than exit polls prediction

Benchmark equity indices Sensex and Nifty tanked over 8% on Tuesday as the initial trend showed BJP winning lesser number of seats than predicted in exit polls.

The 30-share BSE Sensex nosedived 6,234.35 points or 8.15% to 70,234.43 in the afternoon trade. The NSE Nifty tumbled 1,982.45 points or 8.52% to 21,281.45.

Among the 30 Sensex companies, State Bank of India tanked over 16%, while Power Grid and NTPC plunged nearly 15%.

Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries were the other big laggards.

Early trends from the counting of votes on Tuesday threw up disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana and Rajasthan although it is expected to form the government with about 290 seats.

Foreign Institutional Investors (FIIs) bought equities worth Rs 6,850.76 crore on Monday, according to exchange data.

In Asian markets, Seoul, Tokyo, and Shanghai were trading lower while Hong Kong traded with gains.

US markets ended on a mixed note on Monday.

Global oil benchmark Brent crude declined 0.82% to $77.72 a barrel.

Markets jumped sharply on Monday after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.

The BSE benchmark soared by 2,507.47 points or 3.39% to settle at a new closing peak of 76,468.78 on Monday, marking its biggest single-day gain in three years. During the day, the barometer jumped 2,777.58 points or 3.75% to hit a record intra-day peak of 76,738.89.

The NSE Nifty climbed 733.20 points or 3.25% to finish at 23,263.90. During the day, it soared 808 points or 3.58% to hit a fresh intra-day all-time high of 23,338.70.