Markets end in green, as BJP puts up tough fight

Markets end in green, as BJP puts up tough fight

The stock markets on an eventful Tuesday ended in green, despite early jitters, with indices gaining over half a percentage point. The gains were mainly propelled by ruling Bharatiya Janata Party putting up a tough fight in state elections of three key states in Hindi-heartland.

The 30 share BSE Sensex gained 190.29 points, or 0.54%, to close the day's trading at 35,150. On the other hand broader index, 50-share NSE Nifty closed up 60.7 points (0.58%) to close the days trade 10,549.

Early in the morning Sensex had tanked over 500 points in the first hour of the trade, on back of Urjit Patel's resignation yesterday. However, it started stabilising later.

Even as the Patel resigned from his post after the close of day's trade yesterday, RBI deputy governor Viral Acharya deciding to stay put at the central bank also helped in capping the slide of the markets in early hours of the trade. "If Viral had resigned as well, there would have been a rout by FIIs. Since only Patel has only resigned, they think that situation isn't that bad," a market insider told DH.

Till now, in December, FIIs have parked in a net sum of Rs 8,242 crore in the Indian debt and equity markets. However, for the entire calendar year, the foreign funds have pulled out a record net sum of Rs 80,566 crore from the Indian markets.

During the day, it was the BJP's neck to neck fight in Madhya Pradesh, and a better than expected performance in Rajasthan that propelled the markets.

"The markets weren't expecting BJP to even cross 30 seat mark in Rajasthan. Now they seem to cross the 80 mark as well in Rajasthan. Also in Madhya Pradesh, it is a neck to neck competition," CEO of Mutual Fund company told DH, requesting anonymity.

The overall, market breadth was also on the positive side. NSE witnessed 1,249 advances, against 454 decline. On BSE, out of 2,554 stocks, 1,622 showed a decline, while 793 showed advance.

Yesterday, a day ahead of the results, markets tanked with heavy selling witnessed across the sectors and the stocks. The 30-share BSE Sensex crashed by 713.53 points, or 2%, to close at 34,960. On the other hand, broader index NSE Nifty tanked by 205.25, or 1.92%, to close at 10,488.45.