04 Jun , 2024 By : Debdeep Gupta
Nifty PSE index skidded over ten percent in trade on June 4, as the markets are factoring in the less than favorable outcome for the Narendra Modi-led National Democratic Alliance.
Earlier, market experts were factoring in political and policy continuity - as captured in the exit polls - which would have led to the continued outperformance of these public-sector shares.
"The steep fall is due to the results falling short of the exit polls the market had discounted yesterday. If BJP doesn’t get a majority on its own there will be disappointment and this is reflected in the market," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The Nifty PSE index crashed over 10 percent, with all its constituents trading in the deep red. SAIL, GAIL, Coal India, Power Grid, ONGC, Container Corporation of India, and Hindustan Aeronautics tumbled 10 percent each.
BHEL, REC, PFC, and Bharat Electricals slipped 15 percent, with trading temporarily halted in these stocks.
If the NDA coalition returns to power with a large majority, brokerages believed that the government would continue with its economic agenda of development, growth, and liberalization and focus on investment-led growth during its third consecutive term in power.
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