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.
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.
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."
The selling spree in Indian stock markets by foreign portfolio investors (FPIs) turned aggressive in May, standing at Rs 25,586 crore as the month ended.
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.
Indian stock markets closed marginally below on Tuesday after a high volatility during the trading. The equity markets experienced a pause after a three-day streak of record highs.