New Delhi: The Indian stock markets experienced high volatility, with the BSE Sensex falling over 4300 points, or 5.74%, to close at 72,079.05 on Tuesday, June 4. Nifty 50 was down over 1300 points, or 5.93%, to end at 21884.50.
Markets were expected to scale record high ahead of the vote counting. However, a close contest between the NDA and INDIA bloc made traders jittery, leading to a sharp sell-off early Tuesday.
Adani Ports and Adani Enterprises were among the top losers, while Hindustan Unilever and Britannia were the top gainers on Tuesday.
FMCG stocks, including HUL, Britannia, Nestle and Tata Consumer Products, were trading in the green, despite the market crashing.
A sharp sell-off
Traders told Reuters that the markets were selling off on Tuesday as investors awaited more clarity on the total number seats that the NDA would win.
Benchmark stock indices plunged over 8% early Tuesday. This has been recorded as their worst session in the last four years.
According to Reuters, Tuesday’s session erased their gains for 2024. The NSE Nifty 50 index was down 7.2% at 21,605 points as of 12:41 pm IST. The S&P BSE Sensex fell 6.6% to 71,366.
The VIX has jumped to its highest since February 2022 at 31.71.
Amid a tighter race between NDA and the INDIA alliance, it posted its biggest single day rally in over nine years, Business Standard reported.
The VIX, or Volatility Index, is a popular measure of the stock market’s expectation of volatility, often referred to as the “fear gauge” or “fear index.” The VIX represents the market’s expectation of volatility over the coming 30 days.
And all fall down for Adani
Adani Group stocks on Tuesday erased the gains made in the previous session.
In intra-day deals, Adani Total Gas was down 18.5% to below Rs 1,000 to its day’s low of Rs 912.05. Adani Green Energy was down 18.3% to Rs 1,664.95. Adani Energy Solutions fell 14.2% to Rs 1048.70. Adani Power declined 13.6% to Rs 756.
In intra-day deals, Adani Enterprises, Adani Ports and Adani Wilmar lost 10% each. Adani Ports and Adani Wilmar fell 9.8%. Adani Enterprises declined 10%. It had hit a 52-week high in the previous session.
In January last year, US-based short seller Hindenburg Research had accused the Adani Group of stock manipulation and accounting fraud. The stocks were heavily impacted, wiping out more than half the value of Adani stocks. The Adani Group denied all the allegations.
The combined market capitalisation of all 10 listed Adani stocks plummeted by nearly Rs 1.35 lakh crore on Tuesday, Livemint reported. The total market value of the conglomerate’s listed entities stand at Rs 18.07 lakh crore. On Monday, it had crossed Rs 20 lakh crore for the first time ever.
Adani Ports and Special Economic Zone was down 21.26% to end at Rs 1,248 on the BSE. Adani Enterprises was down 19.35% to end at Rs 2,939.95. Adani Power was down 17.27% to close at Rs 723.85.
