MUMBAI: The stock market plummeted on Tuesday, wiping out Rs 31 lakh crore in equity value as uncertainties surrounding the Lok Sabha election results sent investors into a frenzy. The BSE Sensex dropped nearly 6 per cent, ending the day at 72,079.05. At its lowest, the index hit 70,234.43, a five-month nadir.

This steep decline retraced a record-breaking rally observed just a day earlier. On Monday, the market capitalization of BSE-listed firms hit an all-time high of Rs 4,25,91,511.54 crore (USD 5.13 trillion). The plunge brought this figure down to Rs 3,94,83,705.27 crore (USD 4.73 trillion).

Market analysts indicate that expectations of a clear BJP majority had driven earlier gains. However, the absence of a decisive victory led to profit-booking. Market expert Siddarth Bhamre noted, "The profit-booking may continue for some time due to uncertainties around coalition governance."

Vinod Nair, Head of Research at Geojit Financial Services, suggested that the election outcome could prompt significant shifts in political policies, potentially benefiting the rural economy.