Benchmark indices slumped in early trade, as BJP failed to form the government in Karnataka, even as global cues remained weak.
Rising bond yields in the US, once again prompted selling in the US markets, which ended lower and dragged Asian markets down. US stocks halted a robust 4-day rally, as risk aversion grew.
The Sensex was trading lower by 137 points, while the Nifty was down 43 points in trade. Karnataka Bank, which declared a weakish set of quarterly numbers reacted to its results. The shares were down one per cent in trade at Rs 109.
Government owned Syndicate Bank also saw its shares drop on widening losses. The Bank reported a quarterly loss at Rs 2,195.12 crore, against Rs 103.84 crore, year-on-year. The shares of the bank were last seen trading at Rs 48.55.
Jindal Poly saw its shares slump after the firm reported a consolidated loss at Rs 57.43 crore versus profit of Rs 3.66 crore. The shares fell and were changing hands at Rs 251, down 6 per cent in trade.
Vakrangee was once again locked at the lower end of the circuit filter. The whole of last week the shares ended at the lower end, over worries of corporate governance. The auditors of the firm had recently resigned, citing lack of clear information on some of the businesses at the company. The shares of the firm were last trading at Rs 57, with only sellers.
Meanwhile, all eyes on the Karnataka governor, who will shortly call either the BJP or the Congress-JDS formation to form the government in Karnataka. Markets may react to positively to the ability of the BJP to form the government in Karnataka.