Why share market is down today?

Falling Market of India

Stock market today: The Indian stock market saw strong selling in early morning trade on Tuesday, following a spectacular surge on Monday. The BSE Sensex dropped more than 2000 points and to an intraday low of 74,234, while the Nifty 50 index shed almost 700 points and reached an intraday low of 22,566, respectively. In a similar vein, the Bank Nifty index dropped more than 1500 points, reaching an intraday low of 49,409. The Lok Sabha Elections, a crucial political event in India, are out of step with the exit polls, which has caused the market to turn red. They claimed that investors in the stock market are disappointed by the early trends of the Lok Sabha Election results, and that the decline in the Indian stock market is mostly attributable to this unexpected Lok Sabha Election results.

Early trends in Lok Sabha Election results

"This sharp fall in the Indian stock market is mainly due to the disappointing early trends in the Lok Sabha Election results," stated Avinash Gorakshkar, Head of Research at Profit Mart Securities, citing to the disappointing results of the 2024 Lok Sabha Election. Clearly, this tendency is not consistent with the exit poll. The market is now a little panicked."

 Avinash Gorakshkar, however, maintained that these are only preliminary trends, and that the situation will become clearer in the next hour or two. In such a volatile market, he recommended investors commit to a risk management method known as a "strict stop loss," which automatically sells a stock if its price falls to a certain level.

VIX Index for India reaches 52-week high

 
Expecting that the volatility will persist, "The India VIX Index has risen around 20 percent as the volatility index of the Indian stock market today touched a new 52-week peak of 26.32 in the early morning session," stated Sumeet Bagadia, Executive Director at Choice Broking. The India VIX has established a fresh base at 23, but the index has retreated from the intraday peak. Thus, in the near future, the Indian stock market might experience increased volatility."

According to Bagadia, the BSE Sensex has immediate support between 48,500 and 48,200, the Nifty has support at 22,400 and 22,100, and the Bank Nifty has support at 73,700 and 73,000 today.

Disclaimer: Rather than representing, the opinions and suggestions expressed here are those of certain analysts, specialists, and broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.