Rs 5 lakh crore wiped off! Poll jitters, banking & auto woes weigh on indices

Amid nervousness in the market during voting for the third phase of the Lok Sabha election, Indian benchmark equity indices closed lower on Tuesday, dragged by index heavyweight Reliance Industries, banking and auto stocks.

The 30-share BSE benchmark Sensex declined 384 points or 0.52% to settle at 73,512. The broader NSE Nifty dropped 140 points or 0.62% to end at 22,302.

The market capitalisation of all listed companies on the BSE declined by Rs 5 lakh crore to Rs 398.4 lakh crore.

HDFC Bank, Reliance Industries, ICICI Bank, Power Grid, Tata Motors, and Axis Bank exerted downward pressure on the Sensex, while TCS, Infosys, Tech Mahindra, Nestle India, and HUL contributed positively to the index.

Nifty FMCG rose over 2%, driven by nearly 10% gains in top gainer Marico after it forecasted revenue growth to outpace volume growth in fiscal 2025.

A bigger fourth-quarter profit also boosted Godrej Consumer Products by 5.4%, while consumer major Hindustan Unilever, biscuits maker Britannia and cigarette maker ITC were up between 1.3-5.5%.

Titagarh Rail Systems shares closed nearly 5% higher after Morgan Stanley initiated an 'Overweight' rating on the stock with a target price of Rs 1,285.

Nifty Bank, Auto, Media, Pharma, Realty, Healthcare, and Oil & Gas sectors closed 1% to 3.5% lower.

Experts View

"Despite positive global cues, the domestic market continued to consolidate. The domestic market is witnessing profit booking due to various factors, including a low turnout in the ongoing election and premium valuations," said Vinod Nair, Head of Research, Geojit Financial Services.

However, FMCG remained the biggest sectoral gainer in Tyesday’s trading session, driven by expectations of improving volume growth from rural areas aided by favourable monsoon expectations, Nair said.

Aditya Gaggar, Director of Progressive Shares, said, "The Index has made yet another bearish candle on the daily chart indicating upper hand of the Bears. The previous bullish gap zone of 22,160-22,200 will be considered support while 22,400 is an immediate hurdle.

Global Markets

Global shares traded around one-month highs on Tuesday, boosted by renewed confidence in US interest rate cuts.

On Tuesday, US futures pointed to a steady start later on, while stocks in Europe caught a bid from the banks, where UBS and Unicredit beat expectations, sending the STOXX 600 up 0.6%. MSCI's All-World index was up 0.1%, around its highest since April 10.

Crude Oil

Oil steadied on Tuesday as weakness in the physical market countered concern about conflict in the Middle East as Israel stepped up attacks in southern Gaza and a ceasefire deal between Hamas and Israel hung in the balance.

Brent crude futures were down 7 cents to $83.26 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were unchanged at $78.48.

Rupee Ends Flat

The Indian rupee closed barely changed on Tuesday as dollar sales from state-run banks supported the currency even as most of its Asian peers weakened.

The rupee closed at 83.5075 against the U.S. dollar, against 83.4875 in the previous session. It hovered in a tight band of 83.4775 and 83.5175 during the session.