Over $2 bn exodus: PEs, promoters swiftly reacted before poll verdict

Share sales hold breath for government clarity

- SUNDAR SETHURAMAN & SAMIE MODAK

Global private equity (PE) -majors and promoters successfully offloaded shares worth over $2 billion (17,000 crore) before the stock market was thrown into turmoil by the surprise election outcome. Between May 15 and May 31, 14 companies witnessed block deals worth over $50 million (₹420 crore), mainly by PE funds and promoters. The sales occurred amid market optimism, fuelled by expectations that Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) would secure a comfortable majority in the Lok Sabha elections.

On May 27, the S&P BSE Sensex breached the 76,000 mark for the first time ever before retracting some gains, only to reclaim the level on June 3 after exit polls indicated that the BJP-led National Democratic Alliance would secure two-thirds of the 543 seats in the Lower House of Parliament.

Stock prices plummeted on June 4 after the BJP struggled to even cross the halfway mark, halting block deal activity.