Benchmark equity indices Sensex and Nifty tanked over 8 per cent on Tuesday as the initial trend showed BJP winning lesser number of seats than predicted in exit polls.
The 30-share BSE Sensex nosedived 6,234.35 points or 8.15 per cent to 70,234.43 in the afternoon trade. The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45.
Among the 30 Sensex companies, State Bank of India tanked over 16 per cent, while Power Grid and NTPC plunged nearly 15 per cent.
Larsen & Toubro, Axis Bank, Tata Steel, Bharti Airtel, JSW Steel, and Reliance Industries were the other big laggards.
Early trends from the counting of votes on Tuesday threw up disappointing results for the BJP-led NDA in the Lok Sabha elections, which appears to be losing heavily in its strongholds of Uttar Pradesh, Haryana and Rajasthan although it is expected to form the government with about 290 seats.
Foreign Institutional Investors (FIIs) bought equities worth Rs 6,850.76 crore on Monday, according to exchange data.
In Asian markets, Seoul, Tokyo and Shanghai were trading lower while Hong Kong traded with gains.
US markets ended on a mixed note on Monday.
Global oil benchmark Brent crude declined 0.82 per cent to USD 77.72 a barrel.
Markets jumped sharply on Monday after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.