THE Indian stock markets on Tuesday (4) plunged by more than 5,000 points, following a sharp surge in the preceding session. The downturn was triggered by early election results indicating prime minister Narendra Modi's Bharatiya Janata Party-led National Democratic Alliance (NDA) leading in over 272 seats in the 543-member Lok Sabha or Lower House of the Indian parliament.
However, the extent of the victory remained uncertain, with the lead narrower than anticipated by exit polls.
The BSE Sensex plummeted by 6.71 per cent or 5,602 points to 71,002, while the NSE Nifty 50 dropped by 6.89 per cent or 1,634 points at 12:15 am local time. It marked the most significant single-day decline in Indian markets since the onset of the COVID-19 pandemic.
Read: Despite Ram Mandir inauguration, Modi's BJP receives blow to Uttar Pradesh: trends
The indices experienced their most severe decline since March 2020, wiping out all gains made on Monday, following exit poll projections suggesting that the BJP-led alliance is likely to secure a two-thirds majority in the lower house.
Initial trends indicate that the NDA is currently leading on 298 seats, while the opposition Indian National Developmental Inclusive Alliance bloc is ahead on 225 seats. To form the government in the 543-seat Lok Sabha assembly, a party or alliance must touch the magic figure of 272.
Read: India election results: What could a reduced majority mean for Modi's BJP?
According to a report, every sector saw a decline, with bank stocks falling by 7.8 per cent, realty by 9.1 per cent, infrastructure by 10.5 per cent and oil and gas stocks by 11.7 per cent. State-run companies and banks also retreated -- by 17 and 16 per cent, respectively.
Among the 30 companies in the Sensex, the biggest laggards were State Bank of India, Reliance, Larsen & Toubro, Power Grid, NTPC and HDFC Bank.
Among the gainers were Sun Pharma and Nestle.
"The fear of the market is whether present numbers will stay or will reduce further. (Even at current majority) there will be some element of disappointment as they are below market expectations," Mayuresh Joshi, head- equity research India at William O'Neil and Company, was quoted as saying by NDTV.
A 1996 photo of rapper Tupac Shakur (L) and Marion "Suge" Knight is shown on screens during closing arguments in the Duane Davis murder trial, related to the 1996 killing of rapper Tupac Shakur, at Clark County District Court at the Regional Justice Center in Las Vegas, Nevada, on August 31, 2026. Getty Images
A rescuer assists a resident through heavy mud following flash floods on August 27, 2026 in Trishuli, Nepal. A sudden flood swept through the Bhote Koshi River basin in northern Rasuwa on August 26, damaging settlements, roads and energy infrastructure as rescue teams searched for residents and foreign travellers reported out of contact. Hundreds were reported missing, as the death toll started to climb.Getty Images
Rescue personnel provide medical treatment to a child at an army rescue camp in Trishuli Batar, Nepal, on August 27, 2026. A sudden flood swept through the Bhote Koshi River basin in northern Rasuwa on August 26, damaging settlements, roads and energy infrastructure, as rescue teams searched for residents and foreign travellers reported out of contact. Hundreds were reported missing as the death toll began to climb. Getty Ima
Family members of missing flood victims react at the emergency ward of the Maharajgunj Medical Campus, part of the Tribhuvan University Teaching Hospital, on August 28, 2026 in Kathmandu, Nepal. Authorities said the flash floods were triggered after a mass of ice, mud and rock collapsed into a Himalayan river near the Nepal-China border, leaving hundreds dead or missing and causing widespread damage in affected districts. Authorities continued the gruelling search for victims, many buried under metres of mud, as both China and Nepal issued fresh flooding alerts.Getty Images