Lok Sabha Election

Modi struggles, Adani Group’s shares crash suddenly

International Desk

Published: June 4, 2024, 07:18 PM

Modi struggles, Adani Group’s shares crash suddenly

Photo: Collected

The Indian Lok Sabha election results had shown a significant impact on the stock market. As the vote counting began this morning, the anticipated lead of Modi‍‍`s BJP failed to materialize, causing a sharp decline in Adani Group shares, which dropped by 5,000 points in a single day. This sudden market fall resulted in investors losing 26 lakh crore rupees.

The decline in the stock market began on Tuesday as election results started to come in. According to the Hindustan Times, "The stock market began to plummet in the morning. On the day of the results, shares of all major companies fell. At one point, it dropped nearly 5,000 points. However, as the day progressed, prices recovered slightly but then fell again."

Adani Enterprises and Adani Ports were particularly affected, with shares decreasing by 15% and 20% respectively. This is the largest single-day drop for these shares since February 2023. Other Adani Group stocks, including Adani Green, Adani Energy Solutions, and Adani Power, also saw declines of 16% to 19%. Additionally, Adani Total Gas and Adani Wilmar faced significant losses.

On Monday, when exit polls suggested a lead for Modi‍‍`s BJP, shares of seven Adani Group companies saw an increase. However, just one day later, these shares experienced a dramatic fall.

India Today reported a major collapse in the Bombay Stock Exchange, leading to extreme uncertainty and concern among investors. It is believed that the stock market downturn was due to the early vote count indicating that Modi‍‍`s BJP was not leading as expected.

Moreover, the Nifty 50 index saw a significant drop today. As the BJP‍‍`s lead faltered, the Nifty index fell by 6.91% or 1,607.65 points. Just yesterday, the Nifty had risen by over 3%, reaching the 23,000 mark.

In contrast, Hindustan Unilever Limited emerged as the most profitable stock today. Its share price increased by 2.72% or 64.10 rupees, reaching 2,420 rupees. Yesterday, the stock market experienced a jump of 2,500 points, reaching the 76,000 mark, marking the largest single-day rise since February 1, 2021.

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