Sensex, Nifty close in the red after BJP's lead in Karnataka election narrows; Congress-JD(S) alliance could govern state

Mumbai: After surging over 436 points in early trade, the BSE Sensex erased all its gains and ended marginally lower by 13 points at 35,543.94 amid poll trends suggesting that the BJP might not be able to reach the half-way mark on its own to claim government formation in Karnataka.

Besides, weaker global cues and sluggish rupee added to the subdued sentiments on the bourses. Late selling in realty, PSU and infrastructure stocks mainly dragged the market from  its early highs.

Representational image. Reuters.

Representational image. Reuters.

Towards the fag-end of the session, both key indices, the Sensex and the Nifty, entered the negative terrain, reacting to reports that the Congress would offer support to the JD(S) to form a government in Karnataka.

Trends suggested that the Narendra Modi-led Bharatiya Janata party (BJP) is leading, but is still short of a majority in Karnataka.

Investors who had created huge positions after early trends on hopes of a BJP win trimmed their bets after the saffron party's seat prospects shrank.

Also, the rupee slipped to a fresh 16-month low of 67.92 (intra-day) against the US dollar.

The 30-share BSE index hit a high of 35,993.53 points in morning trade. Later, it met with profit-booking at higher levels and slipped into the negative zone to hit a low of 35,497.92, before settling 12.77 points, or 0.04 percent lower at 35,543.94. The gauge had gained 310.44 in the previous two sessions.

The 50-share Nifty reclaimed the key 10,900-mark to touch a high of 10,929.20 points in initial trade and fell back by 4.75 points, or 0.04 percent, to end at 10,801.85. It dropped to a low of 10,781.40.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 717.99 crore while domestic institutional investors (DIIs) bought shares worth Rs 687.23 crore on Monday, as per provisional data.

Globally, Asian markets ended mixed and European markets opened lower.


Updated Date: May 15, 2018 20:31 PM

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