On Tuesday, broader indices fell in line with benchmarks, wiping out Monday’s gains due to aggressive buying above exit poll forecasts.
The SmallCap index fell 4.5 percent to 46,038 levels, while the MidCap fell 4.9 percent to 42,159 levels in early trade. In comparison, the BSE Sensex fell 3.67 percent while the Nifty 50 fell 3.75 percent.
This came after investors resorted to profit booking as they followed early trends indicating a closer contest between the BJP-led NDA and the INC-led INDIA Alliance, which deviated from exit poll predictions. At 10.44 am, the NDA was leading with 291 seats, while the INDIA Alliance was ahead with 225 seats, while others were leading with 27 seats.
Contrary to previous trends, numerous exit polls conducted by various agencies and media outlets predicted the NDA to win between 316 and 400 seats. These polls were released on Saturday after the conclusion of the seven-phase elections, which began on April 19.
Among midcaps, REC fell 8.53 per cent, PFC 7.37 per cent, Indian Bank 7.26 per cent and SJVN 7.20 per cent. Other midcap stocks like Canara Bank, Bank of India, Union Bank, ACC, SAIL, IREDA and NHPC fell 5-6 per share each in intraday trade.
Shares of companies like JP Associates, Techno Electric & Engineering Company, NDTV, Central Bank, NBCC and Bharat Dynamic fell between 6 and 10 percent each among small caps.
At 10:44 am; the broader indices recovered from the day’s lows; the SmallCap index was trading 2.49 percent lower at 47,033 levels, while the MidCap index was trading 2.89 percent lower at 43,087 levels. In comparison, the BSE Sensex fell 2.68 percent to a level of 74,387.
First print: June 4, 2024 | 10:50 am IST