Election Results 2024 Market Close Highlights: Market ends drastically lower as Sensex down 4,380pts, Nifty at 21,880

The 2024 Lok Sabha election results had a significant impact on the Indian stock market, with the Sensex and Nifty 50 indices experiencing a sharp decline. The indexes saw their worst fall since March 2020 as exit polls projected a two-thirds majority for the BJP-led alliance. The ruling National Democratic Alliance was ahead in nearly 300 seats, causing market volatility to spike to its highest level since March 2022.

All sectors were in the red, with bank stocks falling 7.8%, realty dropping 9.1%, infrastructure declining 10.5%, and oil and gas stocks losing 11.7%. State-run companies and banks also saw significant retreats. Adani Enterprises and Adani Ports were the top losers in the Nifty 50 index, falling 19% each.

The fear in the market stemmed from concerns about whether the current numbers would stay or reduce further. The unexpected election results led to a massive sell-off as the market had built up hope for a BJP majority. Asian share markets retreated as global investors awaited India’s official election results and considered the weakening manufacturing activity in the U.S.

The U.S. labor market was closely watched, with the Job Openings and Labor Turnover Survey due to be published later in the week. The strength of the U.S. economy and the Federal Reserve’s interest rate decisions were key factors affecting market sentiment.

In Hong Kong, the Hang Seng Index was up, while China’s CSI300 Index initially opened in negative territory. In early European trades, the Euro Stoxx 50 futures slipped, and U.S. stock futures were mixed.

The Indian bond yields experienced a significant increase, with the benchmark 10-year bond yield rising to 7.0130%. The rupee also depreciated against the U.S. dollar. U.S. Treasury yields fell to the lowest point in two weeks after weak manufacturing data.

Overall, the 2024 Lok Sabha election results had a profound impact on the Indian stock market, with investors closely monitoring developments and adjusting their strategies accordingly.