Markets End Higher; Await Karnataka Elections Opinion Poll

Business

oi-Sunil Fernandes

By Sunil Fernandes

Updated: Friday, May 11, 2018, 15:31 [IST]

Benchmark indices ended the day on a positive note, as global cues were strong and markets awaited opinion poll results slated later on Saturday for the Karnataka elections.

The Sensex ended the day with gains of 289 points, while the Nifty gained 90 points in trade.

Telecom stocks were the hardest hit in trade, after Reliance Jio announced a new set of postpaid plan. Bharti Airtel plunged 5 per cent, while shares in Idea Cellular fell as much as 11 per cent in trade. Tata Steel and Vedanta were among the top gainers from the Nifty.

Shares in PC Jeweller was the most volatile of stock, after the company announced a buyback of shares plan. The shares initially rallied to as much as much as Rs 250, but, fell soon thereafter closed at Rs 200. The company announced a buyback of shares at Rs 350 per share.

PSU banking shares were the hardest hit in trade, following the huge losses posted by Union Bank of India. Most of the top PSU banking stocks including PNB and Canara Bank ended the day with losses.

Meanwhile, most Asian markets ended the day with sharp gains. The Hong Kong's Hang Sang was the top gainer in Asian trade. European markets were marginally lower.

Asian markets rallied following benign inflation reported from the US. This raised hopes that the US Federal Reserve would raise interest rates in the US only gradually.

Indian markets are now expected to take cues from the outcome of the opinion polls in Karnataka, which are slated on Saturday. If the opinion polls hint at a positive outcome for the BJP we might see a fresh rally in the markets. The final results and the counting is only expected on Tuesday, though early next week expect increased volatility over the outcome.

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