Karnataka uncertainty makes Sensex end in red

Hannah Rogers
May 18, 2018

The 30-share Sensex resumed higher at 35,483 and advanced to a high of 35,510.

The 30-share Sensex opened lower and stayed in the negative terrain for the major part of the session, hitting a low of 34,821.62 before ending at 34,848.30 - down by 300.82 points, or 0.86 per cent.

Market Closing: Benchmark indices closed sharply lower on Wednesday as uncertainty remained over the formation of government in Karnataka. Consumer goods makers are already seeing strong volumes growth and global commodity tailwinds (rising crude, metal prices) should aid oil and gas and metal companies. "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.

Foreign portfolio investors (FPIs) net sold shares worth ₹699.22 crore, while domestic institutional investors (DIIs) bought equities to the tune of ₹ 229.06 crore on May 16, as per provisional data.

Among the Nifty50 stocks, Bharti Airtel was the top loser, down 2.57 per cent followed by UltraTech Cement and Wipro, which fell as much as 2 per cent. ICICI Bank, Cipla, Tata Motors, Gail, Sun Pharma, Asian Paints were the other prominent losers in the Nifty. Barring FMCG, which ended with decent gains, all the other sectoral indices closed sharply in the red.

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Broader markets too showed a similar trend as investors cut down their bets, with the small-cap index falling 1.62 per cent and mid-caps losing 1.47 per cent.

Weak Chinese economic data and lack of progress on trade tariff issue between the USA and China too hit investor sentiments. The Bank Nifty fell 0.41%.

The S&P BSE Mid-Cap index rose 0.67 per cent.

This is unedited, unformatted feed from the Press Trust of India wire.

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