The day was full of surprises for the stock markets. The Sensex today closed flat at 35,543.94, down by 12.77 points, after shedding intra-day gain of more than 400 points. In the morning also the Sensex opened flat at 35,570 with all eyes on the outcome of the Karnataka assembly elections.
After opening session, the Sensex soon gained more than 400 points during the course of the day as the early trends suggested that BJP would form the government in Karnataka. The party on the Dalal Street, however, soon got over when the number of seats started coming down for BJP.
As per the Election Commission, currently, BJP is leading in 106 seats, while Congress is at 74 and JD (S) at 39. Final results will be out by the late afternoon.
With chances of having a divided outcome, former Congress president Sonia Gandhi, reportedly, told senior party leader Ghulam Nabi Azad to let JDS’s Kumaraswamy become the Chief Minister. Congress leader Ghulam Nabi Azad, said, “We have had a telephonic talk with Devegowda ji and his son Kumaraswamy ji and they have agreed to take our support.”
Karnataka Congress chief G Parameswar confirmed, saying, “We thank voters and accept their mandate. No party has got the full majority. We are giving support to JDS to form the government.”
The markets opened flat in the morning when the early trends suggested a hung Assembly. The BJP was ahead with 93 seats, Congress at 91 and JDS at 26 in the morning. Following the cue, Nifty opened 10 points down at 10,795.
The exit polls suggested 100 seats for the BJP on an average, 88 seats for the Congress and 32 seats for JD(S). The Kotak Securities report states, “We expect the market to take a BJP victory positively; however, a narrow Congress victory will not lead to a great deal of consternation among market participants with six months to go for the next state elections and 12 months for general elections.”