This Article is From May 19, 2016

Sensex Set To Open Lower; Traders Eye Assembly Elections Results

Sensex Set To Open Lower; Traders Eye Assembly Elections Results

Markets expect BJP to win Assam and improve its vote share in West Bengal, Tamil Nadu and Kerala

The BSE Sensex and the broader Nifty are set to open lower on Thursday, according to futures trading on the Singapore Exchange. Sentiments are likely to be subdued because of weak trading in Asia, where markets scrambled to factor in a near-term US interest rate hike.

Domestic stock markets will react to the assembly elections results, counting for which is underway. Analysts expect the BJP to win in Assam and increase its vote share in the states of West Bengal, Tamil Nadu and Kerala.

"BJP is likely to consolidate its position in Assam, which is positive for the government, as it will be able to push forward its reform agenda more strongly," said K.K. Mital, head of portfolio management, Globe Capital Market.

Corporate earnings will continue to be in focus. Punjab National Bank, which reported a record quarterly loss yesterday, will be closed tracked by traders. The stock had managed to close higher despite disappointing numbers yesterday.

Drugmaker Lupin will report Q4 numbers today, along with budget carrier SpiceJet, whose fortunes have changed dramatically over the last year.

Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.3 per cent.

The minutes of April's policy meeting noted Fed officials said it would be appropriate to raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment.

Such views helped revive the prospect of a rate hike in June, which had recently been dismissed by many investors.

As of 08.10 a.m., the SGX Nifty traded 0.35 per cent or 28 points higher at 7,849.50.