Markets in the positive despite poor congress showing

Commentary

oi-Sunil

By Sunil Fernandes

Published: Tuesday, March 6, 2012, 10:12 [IST]

Indices which opened the day sharply lower on reports of poor leads for the Congress led UPA government in the state of Uttar Pradesh, were back in the positive on indications that the Samajwadi Party would not be able to form a government in Uttar Pradesh on its own.

The BSE Sensex was trading up 87 points at 17,450 points,on hopes that there maybe a SP Congress tie-up for Uttar Pradesh.

Early leads indicated that the Congress was poorly placed in Uttar Pradesh and Punjab. Markets would be disappointed if there is a poor showing by the Congress in the elections, as it would put pressure on the Congress led UPA government at the centre to push through the reform process.

Among the early losers were JP Associates, which lost ground on relentless selling, as it is believed that the Group stands to lose if the BSP fails to form the next government in UP.

Among the gainers included the Anil Dhirubhai Ambai group stocks that included Reliance Power and Reliance Infrastructure.

Markets are now expected to take cues from the election results at least for the next few days.

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