FIIs Sell Over Rs 12,000 Cr India Stocks On Poll Results Day
The idea of a coalition government led by the BJP at the centre leads to widespread market anxiety and a sharp decline in stock indices
Foreign institutional investors (FIIs) heavily sold stocks off their portfolio in India on Tuesday, as the broader market witnessed a bloodbath, tracking initial trends in Lok Sabha results.
FIIs sold net stocks worth Rs 12,436 crore, while Domestic institutional investors (DIIs) too sold heavily with net sales showing at worth Rs 3,319 crore during the session.
Indian stock indices tanked on Tuesday, as the Lok Sabha results were being announced, where incumbent BJP performed below par and seemed that it may fall short of exit poll predictions and the majority mark on its own.
The idea of a coalition government led by the BJP at the centre has led to widespread market anxiety and a sharp decline in stock indices. The BJP, which has been the dominant force in Indian politics over the past decade, is seen as a pro-industry party whose policies have generally favoured economic growth and market stability. The failure to secure a clear majority by the BJP on its own raises concerns about the formation of a stable government and the continuation of economic reforms.
At the closing bell, Sensex closed at 72,079.05 points, down 4,389.73 points or 5.74 per cent, while Nifty closed at 21,884.50 points, down 1,379.40 points or 5.93 per cent.
All Nifty sectoral indices, barring Nifty FMCG, were deep in the red today. Nifty metal, Nifty bank, Nifty financial services, Nifty PSU bank, Nifty private bank, Nifty realty, and Nifty oil and gas, slumped the most, NSE data showed.
At one point during the afternoon, Indian equity indices plummeted over 8 per cent on Tuesday, as poll trends indicated a closer than anticipated fight for the incumbent Narendra Modi-led NDA government.
Nifty logged its worst session in over four years, which it witnessed back during Covid days.
"We expect 7-10 per cent downside for broader markets from current levels. We recommend positioning to move from alpha stocks to defensives - add FMCG, IT, Pharma vs short on ABB, Siemens, Cummins, Coal India, NTPC, PFC, REC, PNB, Canara bank," said Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services.
Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that the current market texture is extremely volatile and uncertain; hence, traders should remain cautious for the next few trading sessions. (ANI)
