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Stock Market Closing:  The benchmark stock indices Sensex and Nifty plunged by nearly 6% on Tuesday, marking the biggest single-day fall in four years. The decline came as the vote-counting trends showed that the BJP may not have a clear majority in the Lok Sabha elections. The 30-share BSE Sensex nosedived 4,389.73 points or 5.74% to close at a more than two-month low of 72,079.05. In the day trade, the barometer tanked 6,234.35 points or 8.15% to hit a nearly five-month low level of 70,234.43.

The NSE Nifty tumbled 1,982.45 points or 8.52% to 21,281.45 during the day. Later, it ended at 21,884.50, a sharp decline of 1,379.40 points or 5.93%. Sensex and Nifty had previously declined by around 13% on March 23, 2020, when lockdown was imposed due to the COVID-19 pandemic.

Heavy profit booking in PSUs, public banks, power, utilities, energy, oil and gas, and capital goods shares dragged the markets into the deep negative. 

"The unexpected outcome of the general election sparked a wave of fear selling in the domestic market, reversing the recent substantial rally. Despite this, the market maintains its expectation of stability within the coalition, led by BJP as the major election winner, thereby mitigating substantial downside in the medium term.

"This is likely to lead to a major shift in political policy with a focus on social economics, which will have a positive effect on the rural economy," said Vinod Nair, Head of Research, at Geojit Financial Services.

The vote-counting trends showed that the BJP was poised to be the largest party, but it may not have an absolute majority, which would require it to rely on its NDA allies to form a government. When the Narendra Modi government came to power on May 16, 2014, the Sensex had risen by 261.14 points, or 0.90 percent, to settle at 24,121.74, and the Nifty had increased by 79.85 points, or 1.12 percent, to 7,203. The BSE benchmark had hit the 25,000 mark during intra-day trading that day.

On May 23, 2019, the Sensex fell by 298.82 points, or 0.76 percent, to settle at 38,811.39, while the Nifty ended down 80.85 points, or 0.69 percent, at 11,657.05. The BSE benchmark had hit the 40,000 mark for the first time, while the Nifty had crossed the 12,000 level on that day.

Among the 30 Sensex companies, NTPC fell by more than 15 percent, while State Bank of India dropped by more than 14 percent, Larsen & Toubro declined by more than 12 percent, and Power Grid fell by more than 12 percent. Tata Steel, IndusInd Bank, Bharti Airtel, ICICI Bank, Axis Bank, Reliance Industries, and JSW Steel were the other big losers.

On the other hand, Hindustan Unilever increased by 6 percent, while Nestle climbed by 3 percent. Tata Consultancy Services, Asian Paints, and Sun Pharma also gained. All sectoral indices, except FMCG, closed in the red. Adani group shares also fell. Adani Ports & SEZ fell by more than 21 percent, Adani Enterprises by nearly 20 percent, Adani Power by 17 percent, Adani Energy Solutions by 20 percent, and Adani Green Energy by more than 19 percent.

The broader market saw the BSE midcap index tumble 8.07 percent and the smallcap index plunge 6.79 percent. Among the indices, utilities plunged 14.40 percent, power tumbled 14.25 percent, oil and gas fell 13.07 percent, services fell 12.65 percent, capital goods fell 12.06 percent, energy fell 11.62 percent, and metal fell 9.65 percent.

A total of 3,349 stocks declined while 488 advanced and 97 remained unchanged on the BSE. In addition, 292 stocks hit their 52-week lows, while 139 reached their one-year highs. On the NSE, 2,438 stocks declined while 242 advanced and 70 were unchanged. The number of stocks hitting a 52-week high stood at 83, while 271 stocks fell to their 52-week lows. Asian markets settled lower in Seoul and Tokyo, while Shanghai and Hong Kong ended with gains. European markets were trading lower. On Monday, US markets ended with a mixed performance. The global oil benchmark Brent crude fell 1.88 percent to $76.89 per barrel.

Meanwhile, the rupee fell 37 paise to 83.51 against the US dollar on foreign fund outflows. Following exit polls predicting a massive win for the BJP-led NDA in the Lok Sabha elections, markets surged sharply on Monday. The BSE benchmark soared 2,507.47 points or 3.39 percent to settle at a new closing high of 76,468.78 on Monday, marking its biggest single-day gain in three years. The NSE Nifty climbed 733.20 points or 3.25 percent to finish at 23,263.90.

Also Read: Stock Market Closing: Sensex, Nifty Surge Over 3% To Hit Record Highs On Exit Poll Predictions

With PTI's Inputs