On Lok Sabha election results day, the BSE Sensex and NSE Nifty 50 have experienced extended losses after a flat opening, driven by early trends indicating a thinner-than-expected lead for the BJP. BSE Sensex was down by 4.58 per cent or 3501 points at 72,967, while the NSE Nifty was at 22,263 down by 4.3 per cent or 1061.25 points. GIFT Nifty was trading at 1,359.50 points, or 5.78 per cent, at 22,154 at 11.30 am. 

According to data from the Election Commission on Tuesday, the BJP-led NDA had secured leads in 280 out of 528 seats, surpassing the majority threshold. Meanwhile, the Congress had also reached over 100 leads. The BJP was leading in 234 seats and had won the Surat seat in Gujarat uncontested. The Congress-led INDIA bloc was leading in 200 seats, outperforming exit poll predictions. The BJP seemed to be facing setbacks in Uttar Pradesh, with the Samajwadi Party leading in 33 seats. In Andhra Pradesh, Chandrababu Naidu’s TDP was ahead, while the BJD appeared to be facing challenges in Odisha.  

Adani Group stocks are particularly in focus, as the shares declined by 5-10 per cent earlier today. This comes after the BSE Sensex and NSE Nifty 50 hit all-time highs on Monday, spurred by exit polls suggesting a marginal increase in seats for the BJP government. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The steep fall is due to the results so far falling short of the exit polls, which the market had discounted yesterday. If BJP doesn’t get a majority on its own, there will be disappointment and this is getting reflected in the market. Also, it is possible that Modi 3.0 may not be as reform-oriented as the market expected and may turn more welfare- oriented. This is getting reflected in the strength in FMCG stocks.” 

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