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.