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Published: June 4, 2024
Updated: June 4, 2024

Major Market Crash: RIL, TCS, and HDFC Bank Suffer Massive Losses Amid Election Uncertainty

Market Turmoil as Election Uncertainty Unfolds

The Indian stock market witnessed a significant decline as uncertainty surrounding the general elections of 2024 weighed heavily on investor sentiment. The National Democratic Alliance (NDA) faced challenges in securing a clear majority, leading to a sharp sell-off.

Top Companies Face Heavy Losses

Shareholders of India's three most valued companies – Reliance Industries Ltd (RIL), Tata Consultancy Services Ltd (TCS), and HDFC Bank Ltd – collectively lost over Rs 3.36 lakh crore. This substantial loss in market capitalization occurred as these companies experienced significant declines in their stock prices.

Reliance Industries Hits Lower Circuit

Reliance Industries Ltd (RIL) experienced a dramatic 10% drop, triggering the first lower circuit of the day. The stock plummeted to Rs 2,719.15 from its previous close of Rs 3,021.25, resulting in a market capitalization loss of over Rs 2.04 lakh crore, bringing its total to Rs 18.39 lakh crore.

TCS Sees Significant Decline

Tata Consultancy Services (TCS), the second most valued company in India, saw its shares fall by more than 3%, closing at Rs 3,593.30 compared to Rs 3,707.35 in the prior session. This decline resulted in a market capitalization decrease of Rs 41,264 crore, reducing its total to Rs 13 lakh crore.

HDFC Bank Suffers Steep Drop

HDFC Bank, India's largest lender, declined by over 7.5%, with its stock price falling to Rs 1,452.85 from the previous day's close of Rs 1,572.10. This drop led to a market capitalization loss of more than Rs 90,593 crore, bringing its total to Rs 11.03 lakh crore.

Broader Market Impact

The broader market also felt the impact of the election uncertainty. The BSE Sensex dropped over 6,000 points, barely holding the 70,000 mark before a slight recovery. Similarly, the NSE Nifty50 plunged around 1,900 points, falling below the 21,300 mark during the day.

Election Results Drive Market Volatility

The election results showed that Prime Minister Narendra Modi's BJP-led alliance was struggling to secure a majority, as indicated by exit polls. The BJP, on its own, fell short of the 250-seat mark in the Lok Sabha elections, adding to the market's volatility.

The significant losses in market capitalization for RIL, TCS, and HDFC Bank underscore the impact of political uncertainty on investor confidence. As the election results unfold, market participants will closely watch for stability and potential recovery in the coming days.