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Sensex, Nifty End Flat; BJP Short Of Majority In Karnataka Elections

Karnataka election results and performance of the BJP are likely to dictate movement for Sensex and Nifty in the very short term, say experts.

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Sensex, Nifty End Flat; BJP Short Of Majority In Karnataka Elections

Karnataka election result: Broad-based gains were witnessed across sectors


The Sensex and Nifty ended flat on Tuesday, after a choppy session amid concerns of government formation in KarnatakaThough the BJP emerged as the single biggest party in Karnataka assembly elections, it was still short of majority, latest vote count data showed. The BSE benchmark index - Sensex - registered a 495-point swing during the session. Outcome of the Karnataka elections 2018 and performance of the BJP, for which Prime Minister Narendra Modi had campaigned heavily, was being closely watched by market participants for direction in Sensex and Nifty in the very short term, according to analysts.

Here are latest updates on trading in Sensex and Nifty today, ahead of announcement of Karnataka election results:


4:20 pm: With the Karnataka elections now out of the way, "the markets will now be more reactive to the international cues, which are a matter of concern specially the rising crude and dollar", said VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.

3:31 pm: The Sensex closed 12 points lower at 35,543 while the Nifty settled 4 points lower at 10,801, breaking a two-day rising spree.

3:23 pm: "Roller coaster ride seen in market where market has wiped out all the gains as sentiments turned negative, with the Nifty struggling below the 10,800 levels as the BJP is away from its half-way mark, though it is likely to be emerging as the largest party in the Karnataka assembly," Dyaneshwar Padwal, AVP-technical analysis at KIFS Trade Capital, told NDTV.

"Sentiment is going to play an important role here based on which party claims the stake," he added.

3:19 pm: Lupin reported a surprise loss of Rs 784 crore for the January-March quarter, due to a one-time charge. The pharma company had registered a net profit of Rs 380 crore for the corresponding three-month period a year ago.

Lupin shares were trading at 0.9 per cent higher in late afternoon.

3:15 pm: Midcap and smallcap stocks underperformed. The BSE sub-indices were down 0.7 per cent and 0.6 per cent respectively.

3:04 pm: IT stocks provided some support to the markets, with the Nifty IT up 0.5 per cent in late afternoon trade. TCS was up 1.4 per cent. Other IT gainers included Tech Mahindra, Mindtree and Infosys, up around 0.7-0.8 per cent.

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2:55 pm: The markets turned flat, with the Sensex trading 2 points higher at 35,559 and the Nifty down 6 points at 10,800. (Read: Sensex gives up gains)

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The Sensex traded in the range of 35,993-35,497 during the session, marking a swing of 495 points. For the Nifty, it was 147 points.

2:40 pm: Market breadth turned negative in late afternoon as 1,597 shares declined while 989 advanced and 131 were unchanged on the BSE.

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2:25 pm: The markets gave up day's gains entirely. The Sensex fell 58 points to touch a day's low of 35,497 while the Nifty declined 25 points to 10,781 in late afternoon.

2:12 pm: Selloff in pharma stocks deepened, with the Nifty Pharma declining 1.6 per cent in late afternoon deals. At day's low, the Nifty Pharma - an NSE index of pharma stocks - declined 2 per cent.

1:55 pm: If the Sensex and Nifty finish with gains today, that would register a third straight day of advances for the indices. The Sensex has risen 310 points in the past two trading sessions.

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1:30 pm: The rupee was trading at 67.68 against the US dollar. "Crude prices continues to be a worry, but with a stronger BJP performance in the Karnataka election, we are expecting rupee to range between 67.30-67.80," said Salil Datar, CEO and executive director, Essel Finance VKC Forex.

1:25 pm: Among pharma stocks, Divi's Laboratories, Sun Pharma, Dr Reddy's Laboratories and Lupin were trading with losses of between 0.8 per cent and 2.4 per cent.

pharma
1:15 pm: Allahabad Bank and Oriental Bank of Commerce were trading around 2-4 per cent lower in afternoon deals. Canara Bank, IDBI Bank and Bank of Baroda were down between 1 per cent and 2 per cent. 

1:00 pm: Some selloff was witnessed in pharma, PSU bank and realty shares, with the sectoral indices on the NSE trading 0.5-0.8 per cent lower.

12:24: Suspected intervention by the Reserve Bank of India (RBI) helped the rupee recover sharply. "This time the intervention from RBI seemed quite decisive," news agency Reuters cited a dealer at a foreign bank as saying.

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12:18 pm: The rupee was trading at 67.54 against the US dollar. Axis Securities said in a note: "The chart pattern suggests that if USD-INR crosses and sustains above 67.70 level it would witness buying which would lead USD-INR towards 67.80-67.90 levels. However if USD-INR breaks below 67.55 level it would witness selling which would take USD-INR towards 67.40-67.30." (ReadRupee recovers from 16-month low vs dollar)

12:01 pm: Overall market breadth was positive at noon as 1,441 shares advanced while 927 declined and 114 were unchanged on the Bombay Stock Exchange.

bombay stock exchange
Top gainers on the 30-scrip Sensex index were Tata Steel, PowerGrid, ONGC, Yes Bank, Kotak Bank, TCS and Asian Paints, trading between 1.4 per cent and 3.1 per cent higher.

11:40 am: The government is scheduled to release trade data for the month of April post-market hours.

11:25 am: At day's highest level of 10,929, the Nifty was only 242 points - around 2.2 per cent - away from its all-time high of 11,171.

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11:15 am: The Nifty was trading 90 points, or 0.8 per cent, higher at 10,897. The Nifty Bank was up 1.5 per cent while the Nifty PSU Bank was trading 1.1 per cent higher.

10:55 am: Global crude oil futures prices have soared past three-year highs, OPEC's deal has cut millions of barrels of inventory worldwide and investors are betting in record numbers that prices could rocket past $80 and even hit $90 a barrel this year, news agency Reuters reported. However, spot crude prices are at their steepest discounts to futures prices in years due to weak demand from refiners in China and a backlog of cargoes in Europe, according to the agency.

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Back home, petrol and diesel prices were hiked for a second straight day, after a 19-day hiatus. With Tuesday's increase, petrol price in Delhi is at a fresh 56-month peak and the price of diesel has registered a new all-time high.

Shares in state-run oil marketing companies HPCL and BPCL were trading around 1.5 per cent higher. Indian Oil however was trading 0.2 per cent lower.

petrol pump
10:45 am: Foreign portfolio investors (FPIs) had bought shares worth a net Rs 717.99 crore on Monday while domestic institutional investors (DIIs) purchased shares worth Rs 687.23 crore, provisional data showed.

10:40 am: All sectors traded in the positive zone.

Thirty nine stocks on the Nifty 50 were trading with gains. On the other hand, top Nifty 50 laggards were Tata Motors, Indian Oil, Hindustan Petroleum and ITC, down between 0.5 per cent and 1.6 per cent.

10:30: Among metal stocks, JSW Steel was up nearly 3 per cent, Tata Steel and SAIL were trading around 2-2.5 per cent higher, and Hindalco Industries was up 1.4 per cent. Vedanta was trading at a gain of 0.4 per cent.

10:10 am: At 35,993, the day's highest point so far, the Sensex is only 450 points away from its all-time high 36,443 - a level recorded in January this year.

10:00 am: The stock markets jumped, with the BSE Sensex adding as much as 364 points to touch 35,921 and the Nifty advancing 98 points to hit 10,904. Broad-based gains were witnessed led by banking and finance stocks.

SBI, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank and IndusInd Bank were trading with gains of 1-2 per cent each in morning deals. LIC Housing Finance was up 0.8 per cent. 

9:55 am: The rupee also recovered to 67.55 after falling to 67.77 against the US dollar, its lowest since January 2017. The rupee had ended at 67.51 against the US currency on Monday.

9:50 am: Gains in equity markets were led by banking, metal and energy shares, with the NSE's sectoral indices trading around 1 per cent higher each.

9:48 am: This week, if the Nifty trades and closes above 10,845, then it is likely to test 10,897-10,949-11,009 levels, according to Anita Gandhi, whole time director at Arihant Capital Markets. "However, if Nifty trades and closes below 10,766 level then it can test 10,714- 10,662-10,602 levels."

9:46 am: "First, markets could view the Karnataka election results as a litmus test of the BJP's popularity in the run-up to the next general election (scheduled for April/May 2019), but we do not share this view, because state elections are often dominated by local issues," according to Japanese brokerage Nomura.

9:43 am: The rupee as well as bonds hit multi-month lows, as global crude oil prices inched up and the inflation print came in higher than expected. The 10-year benchmark bond yield rose 7 basis points to 7.90 per cent - its highest since August 25 2015, while the rupee fell to 67.76 against the dollar, its weakest since January 31, 2017 from its previous close of 67.50. (Read more)

rupee notes
9:36 am: Twenty nine stocks on the 50-scrip Nifty were trading in the positive zone. Top gainers on the NSE benchmark index were PowerGrid (up 3.2 per cent), GAIL India (up 2 per cent), Tata Steel (up 1.4 per cent), ONGC and HDFC Bank (up 1.3 per cent each).

9:26 am: The stock markets reversed early losses. The Sensex rose as much as 234 points to touch, 35,791 while the Nifty rose 64 points to 10,871.

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9:16 am: The stock markets started Tuesday's session on a flat note. At 9:15 am, the BSE Sensex was down 4 points at 35,552, while the NSE Nifty was trading 11 points lower at 10,794.

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9:05 am: "A victory for the BJP will be received well by the market but a narrow defeat will not dent the market's optimism regarding the BJP's chances in the general elections next year. The market has pinned its hopes on earnings recovery and largely ignored the deterioration in the macro, which may weigh on heady multiples," according to Kotak Institutional Equities.

8:45 am: Shares in other Asian markets were mixed, following a choppy session overnight on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.16 per cent. US stocks had earlier ended higher after a choppy session. The Dow Jones Industrial Average rose 68.24 points, or 0.27 per cent while the Nasdaq Composite added 8.43 points, or 0.11 per cent, to 7,411.32.

8:30 am: On Singapore Exchange, SGX Nifty - an early indicator of domestic stock markets - was trading 14.50 points lower at 10,794. That was a sign the markets were likely to start Tuesday's session on a cautious note.

asian markets
The BSE Sensex and NSE Nifty had closed nearly flat on Monday amid cautious trade.

8:25 am: Early leads of Karnataka elections indicated Congress and BJP were neck and neck.

"One can expect volatility...as results hit the TV screens. A BJP majority is not priced in and neither is a Congress win," said VK Sharma, head private client group and capital market strategy at HDFC Securities.

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