Election results: Markets crack 5%! Is today's fall an opportunity for long-term investors? Experts advise strategy

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₹26 lakh crore in intraday deals to around ₹400 lakh crore from ₹426 lakh crore in the previous session.The BSE Sensex tanked as much as 4,131.44 points or 5.4 percent to its day's low of 72,337.34. Meanwhile, the broader Nifty crashed 1,263.3 points or 5.4 percent to its 22,000.60.Meanwhile, in the previous session on Monday, the Indian stock market experienced its biggest single-day rally since January 2021.

Investors bought across the board, buoyed by exit poll results for the 2024 Lok Sabha elections predicting a third consecutive win for the NDA. The Sensex surged by 2,507.47 points, or 3.39 percent, closing at 76,468.78, while the Nifty 50 rose by 733.20 points, or 3.25 percent, to settle at 23,263.90.Despite Monday's significant rally—reportedly the largest single-day surge since January 2021—investors faced a stark reversal of fortune, driven by uncertainties surrounding the election outcomes.The primary reason for this sharp decline is the disappointing early trends in the Lok Sabha election results, which are not in sync with the optimistic exit poll predictions.

This discrepancy has unnerved investors, resulting in a significant market downturn.Broader market indices also suffered, with both the BSE Midcap and the BSE Smallcap indices plummeting around 7 percent each in intraday trading. Sectoral indices, apart from Nifty FMCG, were predominantly in the red, with Nifty PSU Bank bearing the brunt of the losses, down by 15 percent.

It was followed by the Nifty Oil & Gas index, down almost 11 percent, and Nifty Metal, down 10 percent. Other indices including Nifty Bank, Nifty Financial Services, Nifty Auto, and Nifty Realty also lost between 4-8 percent each.However, Nifty IT was down just 1 percent and Nifty