04 Jun , 2024 By : Debdeep Gupta
Sensex and Nifty extended their early morning losses, falling 5 percent each by noon on June 4 as it is evident that the NDA will return to power with a diminished majority. This is in sharp contrast to expectations of the NDA returning to power with a much stronger majority.
At 11.15 am, the Sensex was down 3,737 points or 4.9 percent at 72,731 and the Nifty 50 was down 1,169 points or 5 percent at 22,094. About 362 shares advanced, 2915 shares declined, and 70 shares remained unchanged.
PSU stocks were the biggest losers with trading in many of them being temporarily suspended after a fall of 15 percent. BEL, PFC, and REC were among the big losers down between 15-20 percent.
Besides these, financial services and oil and gas stocks bore the brunt of the selling fury as panicky bulls liquidated their positions.
"The steep fall is due to the results so far falling short of the exit polls which the market had discounted yesterday (June 3). 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.
Brokers said the steep fall would have triggered margin calls which in turn is adding to the selling pressure.
Fundamental View
"Today, with Lok Sabha election results pending, markets are keenly watching for a potential historic third term for PM Narendra Modi and whether the NDA will exceed 400 seats," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Technical View
The upper range for Nifty 50 is seen at 24,130 and the lower range at 20,930, said Anand James, Chief Market Strategist, Geojit Financial Services. James said that Nifty 50 needs to close below 22,954-22,841 for bears to dominate.
Key Nifty gainers
HUL, Hero MotoCorp, Britannia, Divis Labs, Sun Pharma
Key Nifty losers
Adani Ports, Adani Enterprises, Coal India, NTPC, SBI
Key Sensex gainers
HUL, Sun Pharma, Titan Company, Nestle, Asian Paints
Key Sensex losers
NTPC, SBI, Power Grid Corp, L&T, Axis Bank
Stock moves
Adani Ports and Special Economic Zone (ASPEZ): Shares slumped 8 percent on account of profit booking. The correction comes even as Morgan Stanley put an 'overweight' call on the stock with a target price of Rs 1,517 per share.
Defense: Shares of defense-related companies slumped by up to 9 percent as investors rushed to take home partial profits after the bull run seen in these counters in recent times.
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