POST-MARKET SUMMARY 4th June 2024

On June 4, Dalal Street witnessed a bloodbath as market participants remained concerned after the BJP-led NDA received a clear mandate but did not return with a much stronger majority as expected in exit polls. Meanwhile, volatility surged with the India VIX jumping 50% to above 31, intraday. This was the biggest jump in the volatility index in at least nine years. Barring FMCG, all other sectoral indices ended in the red, with Realty, Telecom, Metal, Capital Goods, Oil & Gas, Power, and PSU Bank down more than 10% each.

Also Read: Markets React to NDA's Narrow Win in 2024 Lok Sabha Elections | Insights & Future Projections

NIFTY:  The index opened 84 points lower at 23,179 (which was also today’s high) before closing at 21,884. Nifty has formed a long bearish candlestick pattern with a lower shadow on the daily chart. Its immediate resistance level is now placed at 22,300 while immediate support is at 21,700.

BANK NIFTY: The index opened 312 points lower at 50,667 and closed at 46,928. Bank Nifty has formed a long bearish candlestick pattern on the daily timeframe. Its immediate resistance level is now placed at 48,000 while support is at 46,700.

Stocks in Spotlight

▪  BHEL: Stock tanked over 20% as early trends of election results painted a weaker-than-expected win for the BJP-led NDA. The capital goods pack had been at the heart of this government's infrastructure push, making it one of the best-performing sectors in recent times.

▪  Bharat Electronics: Stock plummeted over 19% after investors rushed to book profits in PSU stocks after NDA-led coalition secured seats below exit poll estimates.

▪  Dabur India: Stock jumped 6.5% in trade as rural consumption is predicted to pick-up on a less-than-expected seat tally for the NDA coalition.

Global News

▪  U.S. Treasury yields slipped on Tuesday as investors considered the latest economic data and what it could mean for the economy.

▪  The pan-European Stoxx 600 was down 0.26% by 2:10 p.m. London time, with all major bourses and most sectors in the red. Mining stocks lost 2.3% while health care was the biggest gainer, adding 0.9%.

▪  Gold prices fell on Tuesday after rising 1% in the previous session as investors awaited U.S. jobs data due later this week for clues on the Federal Reserve’s interest rate trajectory.

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