The Indian stock market witnessed a significant decline on Tuesday, May 19, 2023, as the Sensex crashed 4389 points to settle at 72,029 and the Nifty fell 1379 points to close at 21884. This represents the steepest single-day plunge for both indexes since the COVID-19 pandemic hit in March 2020.
The market’s downturn coincided with the release of election results, which indicated that the NDA coalition was leading with 292 seats, while the INDIA alliance had secured 232 seats. The uncertainty surrounding the election outcomes and concerns about the impact on the economy contributed to the sharp decline in stock prices.
The Sensex and Nifty had previously experienced a steep drop of around 13 percent on March 23, 2020, when a nationwide lockdown was imposed due to the COVID-19 pandemic. However, the latest crash surpassed that decline, indicating the severity of the current market sell-off.
When the Narendra Modi government first came to power on May 16, 2014, the Sensex rallied 261.14 points or 0.90 percent to settle at 24,121.74, and the Nifty jumped 79.85 points or 1.12 percent to 7,203. On May 23, 2019, the Sensex declined 298.82 points or 0.76 percent to settle at 38,811.39, while the Nifty ended 80.85 points or 0.69 percent lower at 11,657.05.
With the recent market crash, concerns have arisen about the stability of the Indian economy and the potential impact on investors. Analysts are closely monitoring the situation and assessing the implications of the election results on the business environment and overall economic growth.
