Party fortunes sway and so does Sensex

Markets witnessed wild fluctuations on Tuesday as Karnataka polls results unfolded. The Sensex, which rose up to 437 points when early counting indicated that BJP was comfortably placed to form the government in Karnataka, gave up the gains as a hung mandate became clear.

The Sensex closed at 35,543.94, down 12.77 points from the previous close. Intra-day, the Sensex surged 437 points to touch a high of 35,993.53. In all, the Sensex gyrated nearly 500 points. The broader 50-stock Nifty closed 4.75 points lower at 10,801.85. 

Weaker global cues and sluggish rupee, too, hit sentiment. “Domestic stocks began the trading day on a buoyant note as initial trends showed the BJP taking a huge lead. A BJP victory in Karnataka will revive hopes of Narendra Modi forming the government again in 2019, which is important for the follow-up of economic reforms,” said Anand Shah, deputy CEO and head of investments BNP Paribas Mutual Fund India.

Wild Swings

• Sensex gyrated nearly 500 pts in a highly volatile day’s session
• The broader 50-stock Nifty closed 4.75 points lower at 10,801.85