Stock Market Reacts to Lok Sabha Election Trends: Sensex and Nifty Take a Dip

Mumbai, June 4 – The stock market experienced a significant drop on Tuesday as the counting day for the Lok Sabha elections began. The BSE Sensex fell by over 1,500 points, opening at 74,924.64, a decrease of 2.02%. Concurrently, the Nifty also saw a decline of more than 500 points, opening at 22,772.80, down by 2.11%.

The market’s reaction was mixed, with nearly 891 shares advancing, 1,572 shares declining, and 121 shares remaining unchanged. Despite the early trends, market experts advised investors to exercise caution. They suggested that investors should not rush to buy, even if the results confirm the Exit Poll findings.

Experts recommend maintaining investments in large-cap stocks and considering profit booking in small-cap stocks. This advice comes in the wake of Monday’s market performance, where the stock markets gained over Rs 12 lakh crore, marking an increase of 3.25%.

Monday’s market surge was largely attributed to exit polls predicting the NDA government’s return to power with a decisive majority. This prediction pushed both the Sensex and Nifty to new highs.