Oil and Gas stocks bled on June 4 as investors rushed to book profits after the sharp rally in the previous session. The Nifty Oil & Gas index slipped over 5 percent in early trade with losses led by Adani Total Gas which nosedived over 10 percent.
Shares of ONGC, Gail India, and other PSUs in the sector including HPCL, Indian Oil, and BPCL also fell to 7 percent on profit-taking.
The Nifty Oil & Gas index had risen over 6 percent in the previous session after exit polls hinted at a thumping victory for the BJP-led NDA with over 350 seats. Early leads show NDA leading in 294 seats.
As early leads showed the NDA coalition's majority might not be as emphatic as exit polls had forecast, Sensex and Nifty 50 dropped more than 4 percent, eroding nearly Rs 25 lakh crore from BSE market capitalization.
Deven Choksey, MD of DRChoksey FinServ believes that the market is reacting with just two rounds of counting done. Also, due to physical counting under VVPAT, the process is slower this time.
He expressed concern over the market's response, highlighting the uncertainty prevailing among traders, particularly those holding positions based on anticipated election outcomes.
However, he emphasized that long-term investors were unlikely to make hasty decisions in response to the market volatility, as the fundamental prospects of the economy and corporate sector remain intact despite the election outcome.
According to Choksey, the market will once again stabilize, and the same high-beta stocks will be bought.
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