Experts predict that the markets will remain rangebound in the near term because the consequences of the bad election result have already been factored in, notwithstanding the Bharatiya Janata Partys inability to obtain a majority. Now that the elections are over, attention will turn to other triggers, such as the Budget and policy announcements, particularly the extension of the prior programs.Due to the NDA coalitions weakened mandate, the market was concerned about the continuation of policy, as evidenced by the 6% fall in both the Nifty and Sensex on June 4. Even worse off were mid and small caps, with their respective indices falling by 6-7%.Foreign portfolio investors sold over Rs 12,000 crore in Indian stocksAfter witnessing the bloodbath during the counting of the Lok Sabha Elections on Tuesday, Foreign portfolio investors (FPIs) sold stocks of their portfolio. According to the data available on the NSE website, foreign portfolio investors sold net stocks worth Rs 12,436 crore. Domestic institutional investors too sold heavily with net sales showing at worth Rs 3,319 crore during the session.The Lok Sabha results, which showed that the ruling BJP did not perform up to expectations and might not secure a majority on its own, caused a collapse in Indian market indices today.According to trends from the Election Commission of India website, the BJP-led National Democratic Alliance is leading in over 300 seats, while the INDIA alliance is leading in about 230 seats.Sensex closed at 72,079.05 points at the closing bell, down 4,389.73 points, or 5.74 percent, while Nifty closed at 21,884.50 points, down 1,379.40 points, or 5.93 percent, at the same time.Except for Nifty FMCG, all Nifty sectoral indices saw significant losses today. According to NSE statistics, the stocks that fell the most were Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank, Nifty real estate, and Nifty oil and gas.According to the experts, the Sensex has witnessed a sharp dip, which it witnessed during the Covid times. It is believed that uncertainty in the market led to a fall and triggered a panic sell-off across various assets.
