Indian equity market lost all points with benchmark measures falling around 1 per cent each after Prime Minister Narendra Modi led-BJP (Bharatiya Janata Party) government was shown returning to power in trends for a second term in office.
The trends of Lok Sabha Elections 2019 has shown BJP reaching the above 300 mark on its own, while the NDA (National Democratic Alliance) is at 350 seats.
Sensex traded closed down by 298.82 points at 38,811, while Nifty was down by 80 points at 11,657.05, at the closing bell. Also, about 1182 shares have advanced, 1303 shares declined, and 170 shares are unchanged.
“In the short term, there may be some good euphoria due to the strong mandate given to PM Modi and we can see 12,500 on the Nifty getting hit soon. We believe this rally should be used to reduce any excess equity exposure that you may have in your portfolio. Hence, don’t be very aggressive in buying at present levels. Stick to your existing financial plans and SIPs,” said Vijay Kuppa, co-founder of Orowealth.
Earlier in the day, Sensex acquired 1,000 points to breach the memorable 40,000 mark for the first time ever. Whereas, Nifty too crossed the key 12,000 mark and set a new record for the index’s new high on the back of early counting in Lok Sabha elections 2019, indicating Modi 2.0 with an uninterrupted majority.
Ahead of the results for the Lok Sabha Polls 2019, according to the Moneycontrol, half of the analysts predicted that there are high chances of the Nifty hitting 12,000 if the results on May 23 also suggest a second term for Prime Minister Modi.
Adding on, the major gainers on the Nifty were IndusInd Bank, Zee Entertainment, Adani Ports, Grasim Industries and Cipla while the losers were Vedanta, Eicher Motors, ITC, Hindalco and Bajaj Finserv.
Among sectors, except infra (up 1 percent) all other sectoral indices ended in loss led by FMCG, energy, metal, IT, auto and pharma.