Indian equity markets ended slightly down largely unmoved by the results of assembly elections in Gujarat and Himachal Pradesh. BJP's decisive win in Gujarat was on expected lines, while Congress was expected to gain from the anti-incumbency wave in Himachal Pradesh
The Sensex closed at 19453.92, down 22.08 points and Nifty closed at 5916.40, down 13.20 points.
"Risk appetite at D-street remained frail after assembly election results suggested Narendra Modi being re-elected as chief minister of Gujarat for third time in a row, defeating ruling Congress party coupled with US fiscal woes," said brokerage Nirmal Bang in a report.
According to market analst Ambareesh Baliga yhe Gujarat polls could be a game changer going ahead. "That also could trigger the next range, which is beyond 6,000," he said in an interview with CNBC-TV18.
Global risk appetite was weak too as deteriorating federal budget negotiations in US fueled concern that automatic tax increases and spending cuts will be triggered.
The top gainers on the Sensex were Jindal Steel up by 2.67%, Hindalco Industry's up 2.44%, Tata Steel up by 2.04%, Hindustan Unilever up by 1.93% and TCS up 1.30%, while, Sun Pharma down by 2.11%, Mahindra & Mahindra down by 1.65%, Bajaj Auto down by 1.40%, L&T down by 1.17% and Wipro down by 1.06% were the top losers in the index.
Tata Motors fell on profit booking and closed 0.93 percent lower, while capital goods stocks such as Larsen & Toubro fell 1 percent on worries of a slowdown in order bookings.
Colgate Palmolive was the star performer , rising 4 percent to close at Rs 1,496 after touching a record high of Rs 1,499.
DB Realty surged over 6% to Rs 164, its highest level since January 2011, on back of heavy volumes.