Markets end lower as Karnataka gets a hung assembly

Andrew Cummings
May 17, 2018

In the early morning trade, the benchmark BSE Sensex rose 260.94 or 0.73 per cent to trade at 35,817.65. The S&P BSE Small-Cap index was up 0.13%.

The 50-share Nifty slipped 4.75 points to 10,801.85 on mild bouts of profit-booking after JDS-Congress alliance news trickled in, dragging the broading index lower albeit marginally.

It recovered slightly in late trade and closed with a negative bias at 35,387.88, down by 156.06 points as compared to its last close.

Markets end lower as Karnataka gets a hung assembly

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 stock settled at Rs 75.55, down 12 per cent on the BSE.

In the markets across Asia and the world, Nikkei and Hang Seng lost 0.21 and 1.23 percent respectively while Shanghai Composite concluded 0.57 percent high.

Global markets were stumped after North Korea cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the United States if it was pushed into unilaterally giving up its nuclear arsenal.

ICICI Bank (down 2.42%), Hero MotoCorp (down 2.35%), Adani Ports and Special Economic Zone (down 1.65%), State Bank of India (down 1.29%) and ONGC (down 0.98%), were the major Sensex losers. At the NSE, shares of the company dived 20.56 percent to Rs 9.85. Like BSE stocks, NSE stocks are also measured based on different factors such as market capitalization. The firm operates through Banking and Capital Market, Insurance, Information Technology, Communication and Entertainment, and Emerging Industries divisions. In a statement, the company said, "RCom and two of its subsidiaries - Reliance Telecom and Reliance Infratel - await detailed order from NCLT, allowing the Ericsson application for admitting the companies to debt resolution under the IBC".

Meanwhile, the rupee recovered from the opening level of 68.14 and was trading at 67.86 against the U.S. dollar on a likely intervention from the RBI in early trade.

Mumbai: The equity markets closed lower for the second consecutive day as the lingering uncertainty over the composition of the next government in Karnataka along with weakness in global stocks impacted sentiments.

Overseas, shares in Europe were trading higher as investors monitored surging interest rates in the bond markets.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 699.22 crore, while the domestic institutional investors bought stocks worth Rs 229.06 crore.

Earlier in the trade session, the barometer Sensex of the BSE had surged over 400 points after early election trend hinted a clear majority for the Bharatiya Janata Party (BJP).

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