Election results contrary to exit polls caused panic in the stock market and Sensex-Nifty fell heavily. Sensex plunged by 4389 points while Nifty plunged by 1379 points. Sensex closed at 72079 and Nifty at 21884 level. After such a fall, is this the right time to invest money in the market?
Experts say that India’s economic growth rate is the fastest in the world. The markets can make a sharp comeback when the market stabilizes. In such a situation, investors have the opportunity to buy good shares at cheap prices. They can invest in these for the long term. For now they should wait for the market to stabilise.
Tuesday’s fall had the biggest impact on the shares of government companies (PSUs) and banks. There was a decline of 20 to 23 percent. Along with this, a weakness of up to 21 percent was recorded in the shares of Adani Group companies. Due to this upheaval in the stock market, investors had to suffer a huge loss of Rs 31 lakh crore.
Gautam Adani suffered a blow of ₹208129 crore, Mukesh Ambani lost ₹75144 crore.
The purchase was made a day ago
It is noteworthy that in most of the exit polls, the NDA alliance was projected to have a huge lead. Encouraged by this, investors made all-round purchases in the domestic stock markets on Monday, due to which Sensex and Nifty reached their new all-time highs. Sensex had jumped 2500 points and Nifty had jumped 733 points, but the unexpected election results on Tuesday created fear among investors, which triggered heavy selling.
Government shares badly beaten
PSU and bank shares included in Sensex companies also suffered badly. REC Ltd’s shares fell by 24 per cent and PFC’s shares fell by more than 21 per cent. NTPC declined by 15 percent. Apart from this, there was a decline of 16 percent in Bank of Baroda and about 14 percent in SBI.
Sharp decline in market capitalization
The selling in big Sensex companies had an impact on small and medium companies. BSE Midcap slipped 8.07 percent to 40788.10 points and Smallcap fell 6.79 percent to 44958.48 points. Due to this selling in the stock market, the market capitalization of BSE fell to Rs 394.83 lakh crore. Last day it was at Rs 425.91 lakh crore. In this way investors lost Rs 31.07 lakh crore.
The situation was like this on the last two results
When the Narendra Modi government came to power on May 16, 2014, the Sensex closed at 24,121.74, up 261.14 points or 0.90 percent. On that day, Nifty rose 79.85 points or 1.12 percent to reach 7,203 points. On May 23, 2019, when the Modi government came to power for the second time, the Sensex closed at 38,811.39 points, down 298.82 points or 0.76 percent. On this day Nifty closed at 11,657.05 points with a fall of 80.85 points or 0.69 percent.
Big fall in these PSU-bank shares
REC 24.07%
PFC 21.62%
BHEL 20.84%
Hindustan Copper 18.53%
ONGC 16.23%
NTPC 14.52%
Bank of Baroda 16.40%
PNB 15.80%
SBI 14.40%
Adani Group suffered the most loss
Adani Ports 21.40 percent
Adani Enterprises 19.13 percent
Adani Ports 20 percent
Adani Energy 19.80 percent
Adani Power 19.76 percent
Ambuja Cements 19.20 percent
When does the Sensex fall drastically?
Covid crisis: 3943 points or 13.15 percent on March 23, 2020
Harshad Mehta scandal: On April 28, 1992, Sensex fell by 570 points or 12.77 percent.
American economic crisis: 1070 points or 10.95 percent on October 24, 2008
Covid: 2919 points or 8.18 percent on March 12, 2020
Covid: 2713 points or 7.96 percent on March 16, 2020
American economic crisis:1408 points or 7.40 percent on January 21, 2008
