Stock Markets, June 4: Sensex crashes 4,390 pts, Nifty gives up 22k on sub-par BJP tally in LS polls

Stock Market Highlights on June 04: In the broader markets, the BSE MidCap, and SmallCap indices sank up to 12 per cent intraday before settling up to 8 per cent lower

Stock market highlights on Lok Sabha election results day, June 04: There was a bloodbath on Dalal Street on Tuesday, June 04, as 2024 Lok Sabha election results defied exit pol trends, with PM Narendra Modi-led BJP government still below 300-seat tally as of 3:30 PM.

The S&P BSE Sensex index crashed over 6,200 points intraday, before settling 4,390 points, or 5.74 per cent, lower at 72,079 levels.

The Nifty50, meanwhile, broke the 22,000-mark to hit an intraday low of 21,281. The index ended at 21,885, down 1,379 points or 5.93 per cent.

NTPC, SBI, Power Grid, L&T, IndusInd Bank, Tata Steel, JSW Syeel, RIL, ICICI Bank, Axis Bank, Airtel, and Bajaj Finserv tumbled in the range of 6 per cent to 15 per cent.

Meanwhile, in the broader markets, the BSE MidCap, and SmallCap indices sank up to 12 per cent intraday before settling up to 8 per cent lower. 

Among sectors, the Nifty PSU Bank index plummeted 14.33 per cent, the Nifty Oil and Gas 11.3 per cent, and the Nifty Metal index 10.25 per cent.

4:08 PM

Tech View :: Sensex has next support at 71,000

Technically, after early morning sharp selloff, the market breached the crucial support of 20-day SMA (Simple Moving Average) 74000 and post breakdown the selling pressure intensified.  

 

In addition, on daily charts, the index has formed 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 (73,500-74,000) would be the key resistance areas while 71,000-70,200 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 next few trading sessions.

Views by: Shrikant Chouhan, Head Equity Research, Kotak Securities

4:05 PM

Tech View :: Where are Nifty, Bank Nifty headed after June 4 crash?

Nifty50
The Nifty has decisively broken down below the previous swing low of 21,820 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 18,840 to 23,340 between the period October, 2024 to May, 2024.

The crucial support levels to keep handy are 21,100 which is the 200-day moving average and 50% Fibonacci retracement level of the entire upmove. A close below this support zone can lead to further decline towards 20,560 which is the 61.82% Fibonacci retracement level. On the upside, 22,310 – 22,550 shall act as an immediate hurdle from short term perspective. The range of consolidation is likely to be 21,000 – 22,500.

 

Bank Nifty

Bank Nifty has also broken down from the rising channel indicating change in trend. We expect the Bank Nifty to correct towards 46,150 – 44,000 which are the 200 day moving average and the 38.2% Fibonacci retracement level of the rise from 32,300 – 51,100. On the upside, 48,600 – 49,200 shall act as an immediate hurdle.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:47 PM

Comment: Markets expect stability within NDA coalition

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.

(Comment By: Vinod Nair, Head of Research, Geojit Financial Services)

3:44 PM

Nifty PSU Bank, Metal lead sectoral losses

3:42 PM

FMCG stocks, HUL, Britannia top gainers on Nifty50

3:40 PM

Heatmap check

3:39 PM

Closing Bell:: Broader indices fare worse than benchmarks

3:38 PM

Closing Bell: Nifty ends 5.93% lower amid LS poll jitters

3:36 PM

Closing Bell: Sensex ends 4,389 points lower

3:26 PM

ALERT :: Shivraj Singh Chouhan (BJP) wins in Vidisha, Madhya Pradesh

3:20 PM

ALERT :: Omar Abdullah (JKNC) loses in Baramulla, Jammu & Kashmir

3:15 PM

ALERT :: Kangana Ranaut (BJP) wins in Mandi (HP); Mehbooba Mufti (JKPDP) loses in Anantnag (J&K)

3:10 PM

This Nifty 50 stock hit new high in weak market; zoomed 95% from 52-wk low

Shares of Hero MotoCorp (HMCL) hit a new high of Rs 5,349, surging nearly 4 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trades on expectation that macro‐economic factors shall aid the industry’s growth. In comparison, Nifty 50 was down 5.8 per cent at 21,920 at 02:28 pm.

In the past one month, the stock price of the two-wheeler (2-W) company has rallied 18 per cent. It has zoomed 95 per cent from its 52-week low of Rs 2,745.05 touched on June 20, 2023. Read more

3:06 PM

ALERT :: Negative surprise on election results to trigger India de-rating, says Emkay Global

>> Current trends indicate that the NDA could end up with ~290-300 seats, comfortably ahead of the 272 majority mark. The bigger surprise is that the BJP, on its own, is set to miss the majority mark by a wide margin, with around 230-240 seats.  

>> It is likely that Narendra Modi will return as PM for a third term. However, he will have to contend with changed circumstances. 

>>  Factor market reforms like those related to land, agriculture, and labor are now off the table, in our view.

>> We expect a market derating in the short term, as the risk on India has gone up. PSUs and Capital goods are the most vulnerable sectors, from which we would stay away for the time being.

>> On the other hand, consumption should come back and we see FMCG and value retailers making a strong return. We are also constructive on Healthcare. 

>> At current levels, we are Neutral and would stay invested but not add to positions. If the Nifty does correct another 10% to below 20,000, we see the market being attractively valued at <18x PER and see an entry opportunity back into Indian equities.

3:03 PM

ALERT :: UBS on India Lok Sabha election results

>> Seems like BJP may not cross 272-mark on its own; coalition govt to return after 10 years in India

 

>> We may see 3 scenario emerging:

 

1) Modi govt with co alliance, but may not function smoothly 

 

2) NDA forms govt but with other PM

 

3) some BJP alliance may swich the sides and INDIA alliance comes; On power, which may result in meaningful policy changes

 

>> Valuations are expensive -  We remain 'underweight' on India.