Share Markets Update: Modi 2.0 Rally Short-Lived; Sensex Ends Lower After Hitting 40,000

Sensex Ends Lower After Hitting 40,000, Nifty Closes Near 11,650

Indian equity benchmarks wiped out morning’s rally to cross milestone during the last hour trade.

The fall in benchmark indices comes amid Lok Sabha election counting suggested second-term for Narendra Modi as India’s prime minister.

The incumbent NDA alliance is ahead in 342 seats while UPA is leading in 94 seats as of 3:40 p.m. The BJP by itself, has leads in 300 seats while Congress is leading in 55 seats. (Catch the live election updates here)

The S&P BSE Sensex ended over 1,300 points lower from day’s high to close at 38,811.39 and the NSE Nifty 50 ended at 11,657.05, down 0.69 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.47 percent lower.

The 31-share gauge and the 50-share index had crossed milestones of 40,000 and 12,000 respectively.

We expect a correction in the markets after the rally during the last few days, according to IIFL Group's Chairman Nirmal Jain.

"The markets are usually volatile on election results day. The money for long-term investment takes time to come and one should not worry about today's intraday fall in the market," Jain told BloombergQuint in an interaction.

The market breadth was tilted in favour of sellers. About 920 stocks declined and 810 shares advanced on the National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty FMCG Index’s 1.73 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.3 percent.