look news india
Stock Market Crash: The results of the Lok Sabha elections 2024 proved the exit polls wrong, due to which the stock market collapsed like a pack of cards today. At one point, the Sensex fell by 6200 points. Investors invested the highest amount of Rs. 46 lakh crore in a day. A huge difference was recorded in the shares of PSU, Tata, Adani and Reliance Group. Know what are the reasons for the fall in the stock market today….
The first reason is that the exit poll estimates turned out to be wrong
The main reason for the big fall in the stock market on Tuesday is that the NDA led by Prime Minister Modi did not get the expected number of seats. In the exit poll estimates, the NDA government led by Prime Minister Narendra Modi was expected to get 361-401 seats, but till the time of writing the news on the day of the results, the NDA was leading on 294 seats. Investors are disappointed due to the exit poll estimates turning out to be wrong.
Second reason- BJP does not have absolute majority!
The second reason for the fall in the stock market is related to the election results. Actually, the exit polls had predicted that the Bharatiya Janata Party (BJP) would get a clear majority. But when the voting started at 12 noon on Tuesday, it became almost clear that there is no possibility of BJP forming a government with an absolute majority in the country. Its effect was also seen in the form of a fall in the stock market and as the counting progressed, the fall in the stock market also seemed to increase continuously.
Third reason- indifference of foreign investors
The indifference of foreign investors in the Indian stock market is constantly visible and is increasing. You can guess that foreign portfolio investors (FPIs) withdrew Rs 25,586 crore from the Indian stock market in May. In the previous month i.e. in April 2024, this figure was Rs 2.55 crore. 8700 crore. It is after almost two decades that such a huge withdrawal has been made by FPIs. According to NSDL data, in 2004, foreign investors withdrew Rs 3248 crore from the Indian markets.
Fourth reason- Investor environment is deteriorating
Exit poll predictions are not turning into reality, BJP has not got a clear majority and the indifference of foreign investors has adversely affected the investor sentiment in the stock market. On Tuesday, there was a huge sell-off in the stock market and stocks ranging from Reliance to Tata, Adani to SBI saw a decline. A massive decline of 18 to 23 percent has been seen in it. The unstable investor sentiment can also be considered a reason for the decline in the Indian market.
