Sensex slips 59 points as BJP falls shy of majority in Karnataka, Cong-JD(S) talk alliance

After hitting a three-month high riding on the BJP’s gain in the Karnataka assembly election, stock markets entered the negative terrain towards the fag-end of the day with the party falling short of majority.

After soaring over 436 points in early trade, stock markets entered the negative terrain towards the fag-end on Tuesday amid poll trends indicating that the BJP might fall short of simple majority in Karnataka.

Indian stock brokers keep watch on the key Sensex share index graph in a brokerage firm in Mumbai. (Reuters File Photo)

The benchmark Sensex gave up all gains and was trading lower by about 59 points at 35,497.92 on reports that Congress would offer support to the JD(S) to form the government in Karnataka.

As per latest poll trends, the BJP was leading on 108 seats, while congress was ahead on 73 and JD(S) on 38.

Investors who had created huge position after early trends on hopes of BJP win trimmed their bets after the saffron party seat prospects shrank.

The 30-share BSE index hit a high of 35,993.53 in morning trade. Later, it met with profit-booking at higher levels and slipped in the negative zone, falling 58.79 points, or 0.16 per cent to trade at 35,497.92.

The 50-share Nifty reclaimed the key 10,900-mark to touch a high of 10,929.20 in initial trade and fell back by 25.20 points, or 0.23 per cent, to trade at 10,781.40.

Globally, Asian markets ended mixed and European markets opened lower.