In response, CLSA has made a strategic shift in its India focus portfolio, replacing L&T with HCL Tech, and turning more defensive by favouring private banks, IT, insurance, and commodities.
Indian stock indices witnessed a bloodbath on the day the Lok Sabha results are being announced, where incumbent BJP performed below par and seems it may fall short of exit poll predictions and the majority mark.
At the opening bell, the Sensex plunged by 1,135.48 points to 75,333.30, while the Nifty dropped by 408.35 points to open at 22,855.55. Among the Nifty companies, only 6 were advancing, and 44 were declining, reflecting widespread caution among investors.
After the stock market opened with an unprecedented uptick on Monday, Bharatiya Janata Party leader Shehzad Poonawalla on Monday said that markets are confident about BJP returning to power.
Indian benchmark indices closed at record highs on Monday, driven by fresh buying from investors after exit polls indicated a comfortable majority for the NDA government.
The stock market reached an all-time high after exit polls forecast a decisive victory for the BJP-led NDA coalition, sparking widespread investor optimism on Monday.
The market capitalization of the State Bank of India (SBI) crossed the Rs 8 lakh crore mark on Monday after the bank's shares surged to a record high of Rs 907.
Ajay Bagga, banking and market expert, commented on the market performance, stating, "Monday is witnessing a gap-up opening, but we anticipate further upside on Tuesday as actual trends become clearer."
Stock markets may reach new heights says market experts post exit poll outcomes. Most of the exit polls gave Modi led NDA government a comfortable win, have enthused market experts.
The Sensex surged by 132.44 points, closing at 73,961.31, while the Nifty climbed by 42.05 points, reaching 22,530.70. The upbeat sentiment was reflected in the performance of Nifty-listed companies, with advances outnumbering declines.