Mumbai: The equity markets witnessed wild swings on Tuesday and closed the session on a subdued note after BJP failed to secure a simple majority in Karnataka.
Earlier in the day, both the Nifty and Sensex surged over 1 per cent each amid expectation that the BJP would form the government on its own after initial counting showed the saffron party securing clear lead over the ruling Congress. However as counting progressed and new trends started emerging, the market sentiments too took a ‘U’ turn.
The Nifty slumped 147.8 points or 1.35 per cent from its days high and finally ended the day at 10,801.85, down 0.04 per cent or 4.75 points.
Similarly, the Sensex fell 495.61 points or 1.37 per cent from its intra-day high to close the session at 35,543.94.
“This is the beginning of a series of state assembly polls scheduled this year. Karnataka assembly election was considered as the first semi final ahead of the 2019 general election. The markets had priced in a clear victory for the BJP, but got disappointed after it fell short of simple majority by a wafer thin margin,” said Ajay Bodke, CEO & chief portfolio manager (PMS) at Prabhudas Lilladher.
With the state assembly poll behind us, he said that the market’s focus would now turn towards rising global crude oil prices, which is negative for India. “While corporate earnings growth has improved, the macros are deteriorating due to higher oil prices,” he added.
The data released on Monday showing a rise in consumer price inflation and weakness in global stocks on account of weak economic data from China also impacted sentiments.
- With the state assembly poll behind us, he said that the market’s focus would now turn towards rising global crude oil prices, which is negative for India.
- The Sensex fell 495.61 points or 1.37% from its intra-day high to close the session at 35,543.94. The Nifty closed 0.04% or 4.75 points down at 10,801.85.
