Sensex, Nifty post strong gains over Karnataka results


Expectations of a BJP victory in Karnataka assembly election lifted the key Indian equity indices during the mid-morning trade session on Tuesday.

The 30-share Sensex surged over 436 points in early trade and the NSE Nifty soared almost 128 points before making a U-turn.

Earlier, a little past noon, the Sensex was trading 0.45 percent lower to 35,384.77 points at 12:15 pm, while the Nifty was trading 0.57 percent lower to 10,740 points, amid uncertainty over government formation in the southern state and sustained foreign fund outflows.

Apart from political uncertainty in Karnataka, a weak trend in other Asian bourses following overnight losses at the Wall Street dampened sentiments, brokers said.

The S&P BSE Mid-Cap index was up 0.11%. Mindteck is a stock traded on the Indian stock exchange.

The Nifty Realty index went higher by 1.71 per cent to 306 around 11 am. Regardless, both indices are reliable indicators of the whole Indian economy and national growth prospects as well.

In addition, the weakness of the rupee, geopolitical developments, domestic corporate results over the next few quarters and also the health of the economy would play a major role in deciding market trend, they said. A total of 112 shares were unchanged.

On the other hand, Wipro (1.53%), Hindustan Unilever (0.70%), Tata Steel (0.46%), Tata Consultancy Services (0.42%), NTPC (0.38%), and Kotak Mahindra Bank (0.35%) were the biggest gainers in the Sensex. The firm operates through Banking and Capital Market, Insurance, Information Technology, Communication and Entertainment, and Emerging Industries divisions.

"Market has a good start led by positive impression of central ruling government in the Karnataka election, but lost its aura as lack of clear majority emerged by the end of the day".

Globally, the dollar inched broadly higher, as traders once again focused on likely interest-rate differentials across the developed-market currency matrix. Asian stocks were mixed as geopolitical developments and rising benchmark United States yields spurred a return of risk aversion. Globally, most Asian markets fell after North Korea unexpectedly cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the USA, reigniting tensions on the peninsula. This has also raised concerns about the planned summit between US President Donald Trump and his North Korean counterpart leader Kim Jong Un scheduled next month. Investors are weighing the prospect for higher Federal Reserve rates as strong U.S. retail and factory data on Tuesday fueled bets the Fed may raise rates three more times this year.