Nifty-Sensex drop sharply on Thursday amid election result uncertainty
May 30, 2024
Mumbai (Maharashtra) [India], May 30 : The Indian stock market faced deepening losses on Thursday due to investor uncertainty surrounding the election results.
The Nifty index fell by 0.95 percent, losing 216 points to close at 22,488.65. Similarly, the BSE Sensex dropped by 0.83 percent, shedding 617 points to end at 73,885.
In the broader market, all indices including Nifty 100, Nifty 200, Nifty Midcap, and Nifty Smallcap closed in decline. Sectoral indices saw a general downturn, with the exception of the banking and media sectors, which managed to avoid the overall decline in the National Stock Exchange.
"The benchmark index is taking cues from the US market as treasury yields continue to climb following the stickiness of global inflation, delaying the central bank's interest rates cut policy. Meanwhile, the broader market continued the weak trend, led by profit booking, due to feeble closing of monthly expiry owing to lack of interest to hold short-term positions, as exit poll is slated in the weekend" said Vinod Nair, Head of Research, Geojit Financial Services.
Among the top gainers in the Nifty 50 were ICICI Bank, Axis Bank, SBI, HDFC Bank, and Bharti Airtel. Conversely, the top losers included Tata Steel, Tech Mahindra, Bajaj Finserv, and Wipro.
"There will be heightened volatility on 3rd and 4th June. If the exit polls indicate a clear trend, which is favourable from the market perspective, buying decisions will be easy even after a spike in prices" said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The shares of Edelweiss Financial Services saw a sharp drop, plummeting more than 11 percent to Rs 68.25. This decline followed the Reserve Bank of India's (RBI) action against two of its subsidiaries over supervisory concerns identified during recent examinations.
Tata Steel's shares also declined significantly, falling more than 5 percent after the company reported a net profit drop of 64.5 percent to Rs 554 crore in Q4 FY24
The shares of Awfis Space Solutions were also listed on the stock exchanges on Thursday. The company's shares started trading at Rs. 435, with 13.3 percent gain over its issue price of Rs 383.
