Closing Bell: Sensex crashes 4,390 points, Nifty dips below 22,000 as BJP misses majority mark

The coal production in the country rose by 14.49 per cent to 84.63 million tonne (MT) in June. The country's coal output was 73.92 MT in June last fiscal, according to provisional figures of the government.

Country's one of the leading SUV makers Mahindra & Mahindra Ltd saw its overall auto sales for the month of June 2024 at 69,397 vehicles, a growth of 11 per cent. 
This sales data also includes exports. In the Utility Vehicles segment, Mahindra saw sales of 40,022 vehicles in the domestic market, a growth of 23 per cent, and overall, 40,644 vehicles, including exports. The domestic sales for Commercial Vehicles stood at 20, 594, as per a company statement.

The roll out of revised mobile service tariffs by telcos Bharti Airtel and Vodafone Idea with increased rates in the range of 10-24 per cent will be seen from the first week of July.
While Bharti Airtel announced a 10-21 per cent hike in prepaid and postpaid mobile tariffs effective from July 3, a day after leading telco and Bharti Airtel’s major rival Reliance Jio announced an increase in rates.

The Indian equity benchmarks witnessed their worst day since the onset of the Coronavirus pandemic after Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) failed to cross the majority mark of 272 although its National Democratic Alliance (NDA) was set to form the government but with a narrower majority eroding the confidence of market participants who were expecting the BJP to improve upon its previous tally of 303.

Both Sensex and Nifty went into a tailspin with Sensex dropping as much as 6,234.35 points or 8.15 per cent to hit an intraday low of 70,234 and Nifty crashing as much as 1,982 points or 8.52 per cent to hit an intraday low of 21,281.45.

Shares of fast moving consumer goods (FMCG) companies were trading higher amid sharp cuts for benchmark indices. Nifty FMCG index was up 0.66 per cent led by gains in Hindustan Unilever, Dabur, Colgate Palmolive, Britannia Industries, united Breweries, Godrej Consumer Products, Marico and United Spirits.

The shares of Public Sector Undertakings and state-owned banks fell as much as 15 per cent amid the crash as Indian Bank fell 17.5 per cent, Union Bank fell 17.41 per cent, Punjab National Bank dipped 16.21 per cent, Bank of Baroda down by 16.23 per cent, and Canara Bank down by 14.31 per cent on NSE. 

India’s election result day has been a wild ride for the domestic stock market as the BSE index faced its worst crash since the pandemic. The BSE Sensex fell as much as 6,000 points or more than 8 per cent in mid-day as PM Modi’s Bhartiya Janta Party struggles to achieve a majority on its own. 

The National Stock Exchange’s Nifty 50 is also facing a ruthless bloodbath as the index has tanked more than 1860 points or 8.03 per cent, losing the key support level of 22,000. The index is gunning towards testing the 21,000 level, breaking which can cause even a larger sell-off rally. 

BSE Sensex has crashed 4,500 points to fall below the 72,000 mark as PM Modi’s National Democratic Alliance gets into a strong tussle with INDI Alliance in election results trends. The market is reacting aggressively to the election result trends as Nifty tanks 1,475 points or 6.34 per cent and currently hovering at 21,777. 

Out of 50 stocks in NSE’s Nifty 50, 46 were trading in red with only Hindustan Unilever, Britannia, Nestle India, and Cipla being the only exceptions. 

Microsoft on Tuesday found itself targeted in two complaints filed by privacy advocacy group NOYB to the Austrian privacy watchdog related to its online education software, the latest grievances levelled against the U.S. tech giant.

Online educational programmes gained in popularity during the COVID-19 pandemic as schools switched to remote teaching and students became online learners.

UBS raised its year-end 2024 forecast for the MSCI All Country (AC) World index to 830 from 800 on Tuesday, citing improving equity risk appetite, optimism around artificial intelligence and a potential slowing of US wage growth.

The brokerage's current forecast gives a 6% 'upside' potential by the end of the year for the benchmark index, which is used to gauge the broader global equity market performance.

On Tuesday, the Rupee experienced a decline as initial trends in election results triggered increased demand for the US dollar, with uncertainty prevailing regarding the election results. 

As of 09:55 am, the Rupee stood at 83.3575 against the US dollar, down from 83.1425 in the previous session. During early trading, the rupee reached an intra-day low of 83.4375.

After facing a strong decline in the early trade, stock markets have shown some recovery as BSE’s Sensex has reclaimed 600 points while Nifty 50 is moving above 22,750. 

As of 10:08, BSE’s Sensex was down by 1,644 points or 2.15 per cent at 74,824 while Nifty 50 was down by 475 points or 2.05 per cent at 22,788. 

After registering massive gains on Monday, Adani Group companies took a strong hit in the early trade on Tuesday as the market reacted aggressively to early election trends. 

• Shares of Adani Enterprises were down 6.73 per cent to 3400.00
• Shares of Adani Power were down 2.72 per cent to 851.50
• Shares of Adani Total Gas were down 7.27 per cent at 1,038.45.
• Shares of Adani Ports and Special Economic Zones were down 6.84 per cent at 1,476.00

Talking about the market volatility in the earlier trade, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services told Reuters, "The leads for the NDA are much lower than what the market could be comfortable with. It's very early and markets will remain will volatile depending on how the numbers change every minute." 

Following a 15 per cent decline on Monday, driven by heightened market optimism due to exit polls, the INDIA VIX, commonly referred to as the Volatility Index, surged by 18.05 per cent to reach 24.74.

Image credit: Tradingview

In the previous session, the INDIA VIX had remained around 20. As of 09:49, the INDIAVIX was hovering at 24.0050. 

Out of 50 stocks in NSE’s Nifty 50, 48 were trading in red with only Hindustan Unilever and Sun Pharma being the only exception. 

Adani Enterprises has lost close to 10 per cent in the early trade followed by Adani Ports which is down by 8.44 per cent, and Coal India down by 7.47 per cent. Following the decline are NTPC, Power Grid, ONGC, SBI, and L&T.  

Stock market live: Benchmark indices fell during early trade on Tuesday as the Lok Sabha election vote counting hints at a tough battle for PM Narendra Modi-led National Democratic Alliance.

All 16 sectoral indices are currently trading in red. 

Read full story here: https://www.republicworld.com/business/markets/sensex-crashes-over-2000-points-amid-strong-volatility-due-to-election-result-trends/?amp=1

Bombay Stock Exchange’s Sensex opened at 75,176 down by 1,468 points or 1.92 per cent at the market opening. NSE’s Nifty 50 has also opened in the red, trading 622 points or 2.68 per cent down at 22,641. The markets are facing strong volatility as the early trends in the Lok Sabha Election voting unfold. 

According to the earlier election result trends, PM Modi-led National Democratic Alliance has gained a strong advantage over Rahul Gandhi’s INDI Alliance. As of 09:18, the NDA was leading in 324 seats while INDI Alliance was taking the lead in 149 seats. Apart from this, 18 seats were led by Other candidates. 

GIFT Nifty erased all of its gains and tanked by over 400 points right before the market opened as traders swayed in to book strong profits. 

Image credit: TradingView

The markets are expected to react strongly to early election result trends in which NDA is taking a substantial lead over INDI Alliance. 

GIFT Nifty has moved below the psychological mark of 23,500 points as the market indicator reacts to the early trends. 

Image credit: Tradingview

As of 08:54, the GIFT Nifty was hovering at 23,351, down by 114  points. 

PM Modi-led NDA has gained a strong advantage over the INDI Alliance, crossing the majority mark in early trends. 

Prime Minister Narendra Modi-led National Democratic Alliance (NDA) has gained the lead in over 292 seats, crossing the majority mark of 272 seats in early trends. 

According to the earlier election result trends, PM Modi-led National Democratic Alliance has gained a strong advantage over the INDI Alliance. 

As of 08:38, the NDA was ahead on 256 seats while INDI Alliance was taking the lead in 107 seats. Close to 15 seats were being led by Other candidates. 

GIFT Nifty has moved below the mark of 23,500 as the market reacts to a closer-than-expected contest in the first 30 minutes of election result trends. 

As of 08:27, the GIFT Nifty was hovering at 23,435, down by 34 points. 

Asian stocks are showing muted movement after a strong swing on the first trading day of June.  Japan's Nikkei 225 opened 0.4 per cent lower, while the broader Topix declined by 0.14 per cent.

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South Korea's Kospi fell 0.28 per cent, and the smaller-cap Kosdaq edged down by 0.09 per cent. The Asian markets are showing limited momentum while trading marginally in red as global investors await the final results of India's general elections.

The Rupee is expected to open marginally higher on Tuesday, with its intraday movement largely influenced by the results of the country's general elections.

Non-deliverable forwards (NDF) suggest the Rupee (INR=IN) will open at 83.08-83.10 against the US Dollar, compared to the previous session's close of 83.1425.

The initial uptick indicated by NDF is attributed to overall Dollar weakness, which is not expected to have a significant impact today, according to an FX trader at a bank.

(With Reuters inputs.)

The vote counting for the Lok Sabha Elections has begun at 08:00 am with NDA taking the lead of seven seats, while INDI Alliance gaining momentum in one seat in early count.

The GIFT Nifty has also inched 25 points up to reach 23,500 points, indicating an upside of 237 points from yesterday’s closing of 23,263 points. Analysts are optimistic about the market opening, suggesting both Nifty and Sensex to open in green. 

Government bond yields are anticipated to decrease in early trading on Tuesday, influenced by the downward trend in US yields, while market participants closely monitor the results of India's general election. Prime Minister Narendra Modi is widely expected to secure a third term in office.

The benchmark 10-year Indian government bond yield (IN071034G=CC) is projected to fluctuate between 6.90% and 6.97%, following its previous close at 6.9438%. This yield reached its lowest level in over two years on Monday.

Spotify raised prices for its premium plans in the United States on Monday, marking the latest move by the Swedish music-streaming service to improve its margins.

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The company increased the price of its individual plan from $10.99 to $11.99 per month, the duo plan from $14.99 to $16.99, and the family plan from $16.99 to $19.99 in its largest revenue market.

In recent months, Spotify has been working to enhance its margins by reducing marketing expenses and implementing layoffs, following a period of heavy investment and promotions aimed at driving user growth.

(With Reuters inputs)

Alphabet-owned Google is laying off at least 100 employees from various teams in its cloud unit, according to media reports.

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According to the report, roles in sales, operations, engineering, consulting, and "go to market" strategy were among those affected, citing internal correspondence.

"We continue to evolve our business to meet our customers' priorities and the significant opportunity ahead," a Google spokesperson told Reuters in an emailed statement.

(With Reuters inputs)

Japan will continue to closely monitor the foreign exchange market and take all necessary measures against disorderly currency movements, Finance Minister Shunichi Suzuki stated on Tuesday, confirming that Tokyo had recently intervened to curb yen weakness.

Japan's Finance Minister Shunichi Suzuki | Image credit: Reuters 

Suzuki's remarks came after the Ministry of Finance released data on Friday revealing that authorities had spent 9.79 trillion yen ($62.2 billion) over the past month to support the yen.

(With Reuters inputs)

On Monday, the government directed all advertisers and advertising agencies to submit a self-declaration certificate affirming that their advertisements do not contain misleading claims and comply with regulatory guidelines.

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This self-declaration is required for all new print, digital, television, and radio advertisements, as mandated by a Supreme Court directive issued last month.

According to a statement from the Information and Broadcasting Ministry, the Supreme Court directive aims to ensure transparency, consumer protection, and responsible advertising practices.

(With PTI inputs)

GIFT Nifty, a derivative contract linked to India's Nifty 50 index and a strong pre-market indicator, has inched 111 points higher as of 07:24 am, indicating a strong start to Indian stock market indices. 

Stock markets have shown remarkable performance a day before Lok Sabha election results with BSE’s Sensex posting its best day in the last 4 years. 

At 7:27 am, GIFT Nifty was trading 101 points up at 23,568. 

Stock market experts are bullish on India’s growth as the economy is growing at an unprecedented pace and policies are conducive to foreign investments. 

Image credit: Republic Business 

"Markets have rallied around the expected election results and it is very hard not to be an optimist on India," said Vivek Bhutoria, portfolio manager for emerging market equities at Federated Hermes.

"Policies are being put in place to attract investments and the realignment of the global supply chain is going to benefit India over time. We are already starting to see some benefits in terms of electronics and chemical exports."

The decisive part of the Lok Sabha elections 2024 is set to start as the counting of votes begins at 8 am across the country. 

Image credit: PTI

The process will begin with the counting of postal ballots, followed by the opening of the EVMs, announced Chief Election Commissioner Rajiv Kumar.

Stock futures edged higher, and the rupee remained steady as votes in the world's largest election were set to be counted on Tuesday. Prime Minister Narendra Modi is widely expected to secure a decisive mandate and a rare third term, according to exit polls. 

Image credit: @NarendraModi/X.com

On Tuesday, NIFTY 50 index futures (GIFc1) rose 0.21 per cent in early trade, according to data from the NSE International Exchange, indicating another record-high open.

On Monday, the Nifty index closed up 3.25 per cent at 23,263.90 points after reaching a record high of 23,338.70 points following exit polls.

The BSE’s Sensex ended Monday up 3.39 per cent at 76,468.78 points, just below its lifetime peak of 76,738.89 points reached earlier in the day.

The Food Safety and Standards Authority of India (FSSAI) has directed food business operators to immediately remove claims of "100 per cent fruit juices" from advertisements and labels on packaged products.

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In an official statement, the FSSAI issued a directive requiring all food business operators (FBOs) to cease making claims of "100 per cent fruit juices" on the labels and advertisements of reconstituted fruit juices with immediate effect.

FBOs have also been instructed to use up all existing pre-printed packaging materials by 1st September 2024. The FSSAI noted that several FBOs have been inaccurately marketing various types of reconstituted fruit juices as "100 per cent fruit juices," prompting this action.

(With PTI inputs)

The stocks of Gautam Adani-led Adani Group will remain in focus after registering strong gains on the first trading day of June. 

Image credit: Republic Business

Adani Enterprises gained over 6.8 per cent, Adani Ports gained 10.25 per cent, Adani Power raked in 15.64 per cent returns for its investors, Adani Energy Solutions was up 8.84 per cent, Adani Total Gas gained 7.77 per cent, Adani Wilmar traded 3.51 per cent up, and ACC Limited was up 5.61 per cent on June 1. 

A glitch at the New York Stock Exchange (NYSE) on Monday caused massive swings in the shares of Berkshire Hathaway and Barrick Gold, and led to trading halts in dozens of other companies before the issue was resolved. 

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The NYSE, owned by Intercontinental Exchange, announced by late morning that the technical problem had been fixed and that the affected stocks had resumed trading. 

This incident marked the second stock market disruption in less than a week, following a glitch last Thursday that interrupted the dissemination of real-time data for the S&P 500 and Dow Jones indexes for over an hour.

Asian stocks opened lower on Tuesday after starting June on a strong note, as investors await the final results of India's general elections.

Japan's Nikkei 225 opened 0.4 per cent lower, while the broader Topix declined by 0.14 per cent.

South Korea's Kospi fell 0.28 per cent, and the smaller-cap Kosdaq edged down by 0.09 per cent. Futures for Hong Kong's Hang Seng index were at 18,092, indicating a lower open compared to the HSI's previous close of 18,403.04. In Australia, the S&P/ASX 200 index remained flat.

GIFT Nifty, a derivative contract linked to India's Nifty 50 index and a pre-market indicator, has opened 39 points up on Lok Sabha election results day on June 4. The stock markets recorded fresh highs on Monday and pre-market indicators are stipulating the continued optimism in the market. 

Image credit: Unsplash

As of 6:42 am, GIFT Nifty was trading 90 points up at 23,555.