Indian stock market crashed in the opening session today, as BSE Sensex tumbled over 600 points in early morning trade and Nifty lowered by 180 points. The fall of sensex is attributed mainly to the exit polls predicting setback for BJP in the state elections in Hindi hinterland.
Exit polls were revealed after market hours on Friday. As most of the exit polls predicted setback for BJP, on Friday evening itself analysts predicted sensex may turn ‘red’ on Monday. And the prediction turned true as there is massive fall of indexes today. It is known news that exit polls on Friday predicted clear win for Congress in Rajasthan, hung assembly in Mizoram and neck-to-neck fight in Madhya Pradesh and Chattisgarh. For Telangana, even though most of the national surveys predicted TRS win, Andhra Octopus Lagadapati survey predicted Congress and allie forming government. The outcome of these elections is very important because – Madhya Pradesh, Chhattisgarh and Rajasthan account for 65 Lok Sabha seats of which the BJP had won 62 in 2014.
So losing in this Hindi belt will have tremendous effect on BJP and NDA, especially because of the fact that Lok sabha elections are just 6 months away. All this took a toll on markets today.
