Shares of public sector enterprises and state-owned banks tumbled up to 15 per cent on Tuesday as benchmark equity indices plunged after the initial trend showed the BJP winning a lesser number of seats than predicted in the exit polls.
The Nifty PSU Bank Index witnessed a steep fall by dropping 839.55 points or 10.49 per cent to 7,166.60, with Punjab & Sindh Bank scrip declining 14.75 per cent to ₹55.50. Indian Bank dropped to ₹528.75 and Union Bank was trading marginally lower at ₹148.90 on the NSE.
In addition, shares of public sector lender State Bank of India (SBI) plunged 11.73 per cent to ₹799.45 apiece.
Shares of Punjab National Bank and Bank of Baroda fell 10 per cent each to ₹123.30 and ₹267.25 apiece, respectively.
The Nifty Bank index went lower by 2,806.40 points or 5.50 per cent to 48,173.55. Further, the Nifty Bank recorded the biggest fall since February 2022.
The Nifty PSE indices too slumped 1,221.55 points or 10.78 per cent to trade at 10,110.25, with the shares of Bharat Electronics Ltd (BEL), PFC, RECL, and Bharat Heavy Electricals dropping 15 per cent.
Additionally, Hindustan Aeronautics, Container Corp of India, ONGC, Coal India, NTPC, Gas Authority of India, SAIL and Power Grid also fell 10 per cent each on the NSE.
In the late morning session, the 50-share NSE Nifty tanked 1,371.85 points or 5.9 per cent to 21,892.05.
The BJP-led NDA was ahead with leads in 296 seats and the opposition INDIA bloc not far behind in 227 seats as votes were counted for the Lok Sabha elections on Tuesday, setting the course for a third consecutive term as prime minister for Narendra Modi, but with a stronger opposition.
While the BJP was ahead in 236 of 542 seats, the Congress had leads in 97, signalling a dip for the ruling party from the 303 score in 2019 and a spike for the opposition party's 52 from the last election. An election marked by acridity and acrimony could end with the treasury benches in reduced numbers and an opposition with more teeth.