On election result day, Indian equities started the session on a subdued note. Panic selling dominated the morning trade, creating mayhem across the board. Although the market showed some signs of recovery mid-session, this did not last long. Another wave of selling in the final session dragged the index down, ending with a massive cut of 1,379.40 points at 21,884.50.
Except for FMCG, all sectors experienced sharp declines, with PSU Banks and Energy being the major underperformers. The broader markets saw even more pain as Mid and Smallcaps corrected over 7.8%, significantly underperforming the Frontline Index.
On the daily chart, the index formed a massive red candle, indicating extreme pessimism in the markets. The impact of the election results is likely to continue into tomorrow’s session. Immediate support is at 21,600, while 22,500 will serve as a strong resistance level.
