Sensex Ends 17 Points Higher Ahead Of State Election Results

The Sensex ended marginally higher on Friday after rising nearly 150 points in early trade after exit polls predicted that BJP is likely to emerge as the largest party in Uttar Pradesh. The results of elections in five states, including Uttar Pradesh, will be announced on Saturday. Indian markets will wait for final state election results for direction, says global brokerage Citi. Indian stock markets have rallied sharply this year, rising around 10 per cent. A global market rally, better-than-expected third-quarter GDP numbers and earnings from India companies and a supportive Budget has boosted the domestic market sentiment. Analysts say that a good performance from BJP in the state elections will help boost the government's reform agenda. 

Here are 10 things to know:

1) Anil Manghnani of Modern Shares and Stock Brokers said that Nifty faces technical resistance at 9,000 to 9,200 level and given the sharp run-up it seen this year, profit-taking is likely to surface at the higher level. 

2) Gaurang Shah of Geojit BNP Paribas Financial Services said Nifty has the potential to go up to 9,500 if BJP gets a decisive mandate in Uttar Pradesh. 

3) Beyond the election results, the market will be eying the Budget session of Parliament and the progress of key GST Bills, said market expert Ajay Bagga. On the global front, the US Federal Reserve's commentary on interest rate, Trump administration's policies and French election results would be keenly eyed, he said. The US Fed rate-setting panel meets next week to decide on interest rate. 

4) The Indian currency has held up well against a rising dollar. A supportive Budget and RBI's strong stance against inflation has propped up the rupee. 

5) This year's rally in domestic market has been driven by domestic investors. In the first two months of this year (January and February), they have pumped over Rs. 7,000 crore into equities. 

6) A big part of the domestic inflows has also been driven by retail investors. Experts say that nearly Rs. 3,000 crore is being invested by domestic retail investors through systematic investment plans of equity mutual funds every month. 

7) Foreign institutional investors, who were net sellers of Indian shares from October 2016 to January 2016, have also turned net buyers of Indian shares and bought shares worth Rs. 10,500 crore in February. 

8) Despite the notes ban, Indian economy clocked a much better-than-expected growth rate of 7 per cent in the December quarter, cementing its place as the fastest growing major economy. 

9) Earnings of Indian companies have also shown resilience in the December quarter. Analysts say that the Q3 earnings of India Inc were better than expected and sets the tone for good growth for subsequent quarters. 

10) The Sensex closed 17.1 points higher at 28,946.23 and the Nifty50 index settled with 7.55 points or 0.08 per cent gains at 8,934.55.