Closing Bell: Sensex plunges 4,390 pts, Nifty below 22,000 as landslide eludes NDA

Indian benchmark indices lost more than 5 percent on vote counting day on June 4. The Sensex was down 4,389.73 points or 5.74 percent at 72,079.05, and the Nifty was down 1,379.40 points or 5.93 percent at 21,884.50.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Markets plunged sharply today, losing nearly 6% and erasing the gains of the past four months. After an initial drop, the Nifty continued to decline, almost retesting its major support zone at the long-term moving average of 200 DEMA around 21,280. However, some recovery in the latter half of the session pared losses, and the index finally settled at 21,844.50. All key sectors, except FMCG, experienced significant losses, with PSUs, energy, and metals being the hardest hit. The broader indices also suffered, each losing around 8%.

Following this sharp decline, we expect continued choppiness, so participants should limit their trades and wait for stability. Investors, however, can use this opportunity to accumulate quality stocks available at good bargains.

Nifty witnessed a gap down opening and nosedived to close down ~6% for the day. The Nifty has decisively broken down below the previous swing low of 21820 which has violated the higher top and higher bottom formation and suggests change in short term trend. Our primary outlook is that Nifty shall now retrace the rise it has witnessed from 18840 to 23340 between the period October 2024 to May 2024.

The crucial support levels to keep handy are 21100 which is the 200-day moving average and 50% Fibonacci retracement level of the entire up move. A close below this support zone can lead to further decline towards 20560 which is the 61.82% Fibonacci retracement level. On the upside, 22310 – 22550 shall act as an immediate hurdle from short term perspective. The range of consolidation is likely to be 21000 – 22500.

Bank Nifty has also broken down from the rising channel indicating a change in trend. We expect the Bank Nifty to correct towards 46150 – 44000 which are the 200-day moving average and the 38.2% Fibonacci retracement level of the rise from 32300 – 51100. On the upside, 48600 – 49200 shall act as an immediate hurdle.

Today the benchmark indices corrected sharply. Among Sectors, almost all the major sectoral indices witnessed profit booking at higher level, but PSU Banks and Energy indices lost the most. Technically, after an early morning sharp selloff the market breached the crucial support of 20-day SMA (Simple Moving Average) or 22500/74000 and post breakdown the selling pressure intensified.

In addition, on daily charts the index has formed a long bearish candle and is also trading below short term and medium-term averages, which is largely negative. For the traders now, 50-day SMA or 22400/73500- and 22500/74000 would be the key resistance areas while 21600-21300/71000-70200 would act as key intraday supports zones. We are of the view that the current market texture is extremely volatile and uncertain; hence, it is advisable that traders should remain cautious for the next few trading sessions.

The unexpected outcome of the general election sparked a wave of fear selling in the domestic market, reversing the recent substantial rally. Despite this, the market maintains its expectation of stability within the coalition, led by BJP as the major election winner, thereby mitigating substantial downside in the medium-term.

This is likely to lead to a major shift in political policy with a focus on social economics, which will have a positive effect on the rural economy. Alongside, the sectors that have topped in the past five years, including power, capital goods, real estate, and industrials, are advised to exercise caution in the near term. Nevertheless, the long-term growth prospects for these sectors remain robust.

On the election result day, the Indian equities commenced the session on a tepid note. Mayhem was seen in the form of panic selling across the board in the morning trade itself. In the mid-session, some recovery was seen but did not last for long as another round of selling in the last session dragged the Index lower to end the session with a massive cut of 1379.40 points at 21,884.50.

Barring FMCG, all the sectors ended the session with a sharp decline with PSU Banks and Energy being the major underperformers.

The real pain was seen in the Broader markets as Mid and Smallcaps corrected over 7.8% to underperform the Frontline Index.

On the daily chart, the Index has formed a massive red candle which suggests extreme pessimism in the markets and the impact of counting is likely to persist tomorrow as well. The immediate support is located at 21,600 while a level of 22,500 will be a strong hurdle.

Indian rupee ended 38 paise lower at 83.52 per dollar on Tuesday versus Monday's close of 83.14.

Indian benchmark indices lost more than 5 percent on vote counting day on June 4.

The Sensex was down 4,389.73 points or 5.74 percent at 72,079.05, and the Nifty was down 1,379.40 points or 5.93 percent at 21,884.50. About 331 shares advanced, 3093 shares declined, and 55 shares unchanged.

Biggest losers on the Nifty included Adani Ports, Adani Enterprises, ONGC, NTPC and SBI, while gainers were HUL, Nestle, Britannia Industries, Hero MotoCorp and Tata Consumer Products.

Except FMCG, all other sectoral indices ended in the red with Realty, Telecom, Metal, Capital Goods, Oil & Gas, Power, PSU Bank down more than 10 percent each.

BSE Midcap index shed 8 percent and smallcap index fell nearly 7 percent.

Nifty has an immediate support zone placed at 21,800 - 21,850 mark - which if broken can extend weakness further towards 21,500 and 21,250 levels. However, if this level holds well then we can see 22,250 and 22,500 reclaiming once.

At present levels, the risk reward looks favourable on the buying side with a strict stoploss kept at 21,800 mark for potential targets of 22,250 and 22,500 on the benchmark.

Similarly, Bank Nifty has a major support zone placed at 46,500 to 46,700 zone - which if broken can extend weakness towards 46,000 and 45,500 levels. However, if this level is held then we can see higher levels of 48,000 and 48,500 levels.

At present levels, the risk reward looks favourable on the buying side with a strict stoploss kept at 46,500 mark for potential targets of 48,000 and 48,500 levels.

#1 FY24 order flow rose 35 percent YoY for industrial stocks
#2 Siemens’ sizeable Rs 25,500 crore FY23 railways order & 44 percent YoY excluding it
#3 ABB, Siemens, Thermax combined saw 8 percent YoY order growth
#4 If the current govt retains majority, it adds wings to the strong sector outlook
#5 L&T, HAL, Siemens, ABB, Data Patterns, Thermax & KEI are top picks

Punjab National Bank in its meeting has accorded its approval for initiating the process of diluting 10.00% stake of the bank in M/s Canara HSBC Life Insurance Company Ltd., an associate company of the bank, by listing the company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO). The same shall be subject to regulatory approvals.

Vakrangee has entered into a share purchase agreement for acquisition of 48.5% equity share capital of Vortex Engineering Private Limited from the AAVISHKAAR INDIA MICRO VENTURE CAPITAL FUND, AAVISHKAAR INDIA II COMPANY LIMITED and AAVISHKAAR VENTURE MANAGEMENT SERVICES PRIVATE LIMITED.

Sensex Today | Nifty Midcap 100 index recovers 2,100 points from day's low

Oil prices fell more than $1 on Tuesday, extending losses from a four-month low in the previous session, as investors worried about supply rising later in the year amid signs of weakening U.S. demand.

Brent crude futures fell $1.14 cents, or 1.5%, to $77.22 a barrel at 0825 GMT. Brent on Monday closed below $80 for the first time since Feb. 7, after falling more than 3%.

U.S. West Texas Intermediate crude futures eased $1.23 cents, or 1.7%, to $72.99 a barrel. WTI on Monday fell by 3.6% to settle near a four-month low.

Sensex Today | All Nifty CPSE stocks trade in the red; REC, PFC down 20% each

Indian Rupee depreciated by 0.37% today as domestic markets fell sharply amid uncertainty over election results outcome. This may have also led to some sell-off by foreign investors. US Dollar recovered from yesterday’s losses on weak Euro which fell on disappointing employment data. US Dollar fell on Monday on weaker than expected ISM manufacturing PMI and construction spending.

We expect Rupee to trade with a slight negative bias amid uncertainty over outcome of election results. Currently, it seems difficult for the ruling party to get a clear mandate/absolute majority. However, Rupee will take cues from final results. Traders may also take cues from movement in the US Dollar and crude oil prices.

On the data front, traders may watch out for JOLTS job openings and factory orders data from the US. Investors may remain cautious ahead of RBI’s monetary policy later this week. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 84.

As BSE-listed companies erase market-cap of nearly Rs 40 lakh crore on June 4 due to underwhelming vote tally for Narendra Modi-led National Democratic Alliance (NDA) compared to exit poll estimates, Feroze Azeez, Deputy CEO at Anand Rathi Wealth in a conversation with Moneycontrol said that he expects some degree of disappointment to prevail in the short-term.

However, Azeez ruled out any catastrophic fall in the medium-term, terming this panic as a knee-jerk reaction to exit poll estimates. (More read)

Nomura advises waiting for clarity on the Indian election situation. Nathan Sribalasundaram, rates strategist at the firm, notes the discrepancy between exit polls and actual results, suggesting a need to await final outcomes for long-term predictions.

Out of all the stocks listed on the BSE, 650 hit the lower circuit. This included 17 stocks in the A group, 71 in the B group, 43 in the M group, 126 in the T group, 112 in the X group, and 226 in the XT group.

Despite the significant selloff, approximately 96 stocks across all listed firms on the BSE hit the upper circuit. Among these were 14 stocks from the T group, 27 from the X group, and 42 from the XT group.

Markets@2 | Sensex, Nifty off day's low

The Sensex was down 3,310.42 points or 4.33 percent at 73,158.36, and the Nifty was down 1,030.20 points or 4.43 percent at 22,233.70. About 308 shares advanced, 3099 shares declined, and 55 shares unchanged.

Except Nifty FMCG, all other sectoral indices were trading in the red.

BSE Midcap and Smallcap indices fell 5-6%

Sensex Today | BSE Information Technology index down 0.7%; Genesys International down 10%

#1 Despite strong 70 percent+ utilisations, pricing pressure dragged FY24 pat for GRIL & HEG
#2 Estimate margin pain to continue in FY25, & hence cut estimate
#3 But are cautiously optimistic on a gradual revival thereafter
#4 Recent recovery in global PMIs is driving optimism
#5 New EAF steel capacities are coming up

Sensex Today | Nifty Realty index down 8%; Hemisphere Properties, Prestige Estate, DLF Indiabulls Real Estate fall 10-12%

Sensex Today | Nifty FMCG index gains 0.5%; HUL, Dabur India up 5% each

Sensex Today | BSE Bank index declines 9%; Bank of Baroda down 16%, SBI down 13%

Sensex Today | BSE Auto index slips 4%; Ashok Leyland, Cummins down 10% each

#1 FIIs might have a sentimental reaction
#2 Don’t see any risk towards India’s corporate profit
#3 Market is healthy, with 8% growth rate
#4 India’s growth story is intact
#5 Believe India GDP growth 8-8.5% will not go away

Markets@1 | Sensex down 4,400 pts, Nifty below 21,900

The Sensex was down 4,405.52 points or 5.76 percent at 72,063.26, and the Nifty was down 1,397.90 points or 6.01 percent at 21,866.00. About 241 shares advanced, 3149 shares declined, and 57 shares unchanged.

The technology services and consulting company has appointed Bruno Schenk as the Country Head and Managing Director for Switzerland, effective immediately.

Sensex Today | Nifty FMCG index outperform; HUL up 5%

#1 Acquires container terminal at Tanzania port
#2 30-year agreement to operate & manage Ct2
#3 95 percent stake acquired through consortium JV (EAGL) for USD 39.5 m
#4 Cargo volumes were flat YoY in May'24 & +5 percent YoY for YTDFY25
#5 Shutdown of Gangavaram Port led to volume loss of 6 mmt in April-May 2024

Sensex Today | BSE Telecom index drop 14%; Vodafone Idea slips 20%

Sensex Today | Nifty Media index sheds 10%; Zee Entertainment Enterprises, Dish TV among major laggard

Expect a 17% EPS CAGR over FY24-26, driven by an 11% revenue CAGR and a 210bp EBITDA margin expansion

FY25e EPS is slightly lower due to high interest and depreciation costs, while FY26e EPS is slightly higher on better margins

Retain a buy at a higher 12-mth TP of Rs 1,500, 18x FY26e EPS (earlier Rs 1,200, 15x FY26e EPS)

Raise multiple on higher EBITDA growth and coming EV opportunities (Abhinava Rizel)

Sensex Today | BSE Smallcap index falls more than 10%; Hindustan Copper drops nearly 25%

Sensex Today | BSE Midcap index shed nearly 12%; BHEL, SAIL, REC, PFC down 24% each

Shares of capital goods stocks came under fire on June 4, with the entire BSE Capital Goods index plummeting close to 10 percent as early trends of election results painted a weaker-than-expected win for the BJP-led NDA.

The capital goods pack had been at the heart of the incumbent government's infrastructure push, making it one of the best-performing sectors in recent times. Analysts had also named the sector as one of the key beneficiaries of the BJP's majority win in the elections. Read More

Sensex Today | BSE Oil & Gas index declines more than 14%; Gail down 23%, ONGC falls 20%

Indian rupee extended the early losses as it is trading at 83.49, down 35 paise from its Monday's close 83.14

#1 Company is set to ramp up remote monitoring system that is on stronger platform
#2 Revenues can grow at 30 percent+ CAGR
#3 Market share could rise from 5 percent to 7 percent of total with good margins
#4 Competitive intensity is key to watch
#5 Scale-up of RMS, collections with cash management growth will aid 20 percent CAGR in profit

Sensex Today | Nfity Bank near lower circuit; down 9%

Sesnex Today | Nifty down 6.22%, most since March 23, 2020 covid crash

Sensex Today | BSE PSU index tumbles 15%; REC, PFC, BEL, BHEL tank more than 20% each

The board has appointed Sikander Yadav as Chief Financial Officer and re-designated Amit Agarwal as VP-Finance & Accounts. Earlier, Amit Agarwal was the Chief Financial Officer.

Sensex Tdoay | Bank Nifty down 3,300 points; falls to below 47,700

Sensex Tdoay | BSE Power index tumbles 12%

The company recorded a new peak of 2.15 lakh tonnes monthly sales of manganese ore in May 2024, registering growth of 41% over May 2023.

Stock Market LIVE Updates | Bank Nifty tumbles over 2,800 points, falls below 48,200

Banking stocks were on a shaky ground on June 4 as investors rushed to book profits after yesterday's record high moves. Shares of Bank of Baroda, PNB, SBI, Bandhan Bank, Axis Bank, IndusInd Bank, among others slipped up to 9 percent, as against 5 percent decline in the Bank Nifty index. The overall market sentiment also deteriorated after NDA-led coalition secured seats below exit poll estimates so far, while opposition I.N.D.I.A coalition exceeded exit poll predictions. READ MORE

Stock Market LIVE Updates | Nifty sees biggest single-day fall since February 24, 2022

Sensex Today | BSE PSU index sheds over 10%

Sensex Today | Nifty PSU Bank index plunges nearly 10%

Markets@11 | Nifty around 22,300, Sensex sheds 3,000 pts

The Sensex was down 2,992.78 points or 3.91 percent at 73,476.00, and the Nifty was down 929.80 points or 4.00 percent at 22,334.10.

BSE Midcap and smallcap indices down 4 percent each. 

All the sectoral indices are trading in the red with PSU Bank down 9 percent.

Subsidiary 3i Infotech Saudi Arabia LLC has not been able to pay two instalments for April and May 2024 due to cash flow issues. Consequently, the Zakat, Tax and Customs Authority (ZATCA) has initiated a mandatory collection process and blocked immigration of employees of the subsidiary and other government portal services.

Sensex Today | Defence stocks under pressure

Markets are very volatile. Technically, the 161.8% retracement level of 23400 was met, and now the lower end of the rising channel support is at the 22100 zone.

The option chain also reflects PE OI unwinding on the weekly expiry, with the 22800 zone now looking like resistance. Therefore, an aggressive move of 500 to 800 points can occur after the results are out.

Markets have shown higher volatility at the start of the day, as they have been reacting to the results outcome. Although the important near-term supports have not been breached, traders can wait on sidelines and wait for the volatility to settle down. The 40 DEMA in Bank Nifty in 48800-48700 in the important support zone to watch out.

#1 Acquires container terminal at Tanzania port
#2 30-year agreement to operate & manage Ct2
#3 95 percent stake acquired through consortium JV (EAGL) for USD 39.5 m
#4 Cargo volumes were flat YoY in May'24 & +5 percent YoY for YTDFY25
#5 Shutdown of Gangavaram Port led to volume loss of 6 mmt in April-May 2024

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.O 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.

#1 Re-rating potential takes center stage as monetisation cycle picks up
#2 Expect a steady re-rating, earnings catch-up will be a FY26 event
#3 Multiple catalysts from improving retail & energy earnings keep us overweight
#4 Company remains in top five in regional preference order

Adani Group stocks nosedived up to 18 percent on June 4, taking a significant hit after experiencing substantial gains in the last couple of trading sessions.

The sudden drop appears to be driven by the unwinding of speculative positions, as investors take profits or reduce their exposure. The sharp correction led to Adani Group's market capitalisation eroding by over Rs 10 lakh crore.

In the previous session, the conglomerate's stocks gained, adding Rs 1.4 lakh crore to the value, taking the total market value of the conglomerate's listed entities to nearly Rs 20 lakh crore.

In morning deals, Adani Total Gas was the top loser, falling nearly 18 percent. Adani Energy Solutions slumped 12 percent, Adani Power fell over 10 percent, Adani Green Energy was down 7 percent, Adani Enterprises also fell 7 percent. Read More

Subsidiary Aurigene Pharmaceutical Services, a global CRDMO, has opened its biologics facility in Hyderabad, offering process development and clinical scale manufacturing capabilities.

Sensex Today | Except Nifty Pharma and Nifty FMCG sectors recover

Markets@10 | Sensex falls 1,600 pts, Nifty below 22,800

The Sensex was down 1,592.74 points or 2.08 percent at 74,876.04, and the Nifty was down 488.30 points or 2.10 percent at 22,775.60. About 519 shares advanced, 2573 shares declined, and 102 shares unchanged.

Except FMCG and Pharma, all other sectoral indices were trading lower with bank, capital goods, metal, oil & gas, power, realty falling 2-4 percent.

BSE Midcap and Smallcap indices were down 2 percent each.

Sensex Today | Nifty Bank recovers 580 pts from day's low, down 3%; PNB, Bank of Baroda down 6% each

Its overall disbursement stood at Rs 4,430 crore in May, growing 7% over the same month the previous year. Business assets at approximately Rs 1,05,250 crore grew by 23% YoY in May.

The jewellery company has acquired the remaining 15% equity stake in Candere from Rupesh Jain for Rs 42 crore.

Sensex Today | BSE Power index declined 6%; Adani Green Energy, Adani Power, Adani Energy down 7% each

The market would have corrected even if the NDA alliance was on course to hit 360 plus. Valuations are expensive. Nifty could not have sustained above 23500 even otherwise.

It is just trading going on right now, I would not read too much into it. Unlikely, there will be any major changes to government's policy even if it wins fewer seats

The company has received approval from the US Food and Drug Administration (US FDA) for its injectable drug product, Micafungin (50mg and 100mg vials). The drug is used as an antifungal medication to treat fungal or yeast infections.

Sensex Today | Nifty PSU Bank index sheds 5.5%; Central Bank of India, Bank of Maharashtra down 7% each

The company said the meeting of the board of directors is scheduled for June 6 to consider raising funds via issuance of equity shares and/or any other eligible securities.

Key Adani stocks take a hammering. These stocks had been the biggest gainers in the last couple of trading sessions. Unwinding of speculative positions, it looks like.

Sensex Today | All the sectoral indices trade in the red

At 09:16 hrs IST, the Sensex was down 1,544.14 points or 2.02 percent at 74,924.64, and the Nifty was down 491.10 points or 2.11 percent at 22,772.80. About 891 shares advanced, 1572 shares declined, and 121 shares unchanged.

The Nifty surged yesterday, fuelled by strong exit poll results predicting a decisive victory for the BJP-led NDA and positive economic indicators like an 8.2% GDP growth in FY24, an 'above normal' monsoon forecast, a 10% rise in GST collections, and falling oil prices.

Today, with Lok Sabha election results pending, markets are keenly watching for a potential historic third term for PM Narendra Modi and whether the NDA will exceed 400 seats.

A favourable outcome could drive Nifty towards the 24,000 mark, while the 22,500 level remains crucial support. Key stocks to watch include HDFC AMC, Suzlon, and DLF, with Suzlon recommended for long-term accumulation.

Bullish on GAIL, NTPC, ONGC and Adani Enterprises

Indian rupee opened 10 paise lower at 83.24 per dollar on Tuesday versus Monday's close of 83.14.

Benchmark indices are trading firm in the pre-opening session.

The Sensex was up 661.59 points or 0.87 percent at 77,130.37, and the Nifty was up 214.60 points or 0.92 percent at 23,478.50.