The Nifty PSE index tumbled over ten percent on June 4 as markets reacted to the less than favourable outcome for the Narendra Modi-led National Democratic Alliance (NDA).
Earlier, market experts had been optimistic about political and policy continuity, as suggested by exit polls. This expectation had driven the recent outperformance of public-sector shares.
“The steep fall is due to the results so far falling short of the exit polls, which the market had discounted yesterday. If BJP doesn’t get a majority on its own, there will be disappointment, and this is getting reflected in the market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
