Business

Gujarat Elections Effect: Sensex Fluctuates By 1,100-Point During Result Tension

News World India | 10
2860
| December 18 , 2017 , 13:01 IST

Marking an all-time low, Sensex opened with 850 points in Indian markets today when the projections were showcasing a close fight between BJP and Congress in Gujarat polls. As the ruling party recovered and started leading, Sensex moved forward as well.

The day marked the fluctuation of over 1,100 points in share market and analysts believe that Gujarat Elections have caused such swing. While Sensex initially fell to 32,595 marking the day's low, Nifty slumped to 10,074 points due to the aggressive battle of Congress and BJP in Gujarat and Himachal Pradesh.

Many experts also suggest that not just the election results but global factors like the progress on US tax reforms and crude oil prices have also contributed to the market fluctuations but the election counting seems to the key factor.

The Sensex reached nearly 275 points at 33,736 at noon while Nifty nailed back the above 10,400 mark. As BJP takes lead in Gujarat's assembly elections by claiming majority seats out of total 182 and in Himachal Pradesh, the market is also seen retaining a better position.

The rupee has also recovered against the dollar after initially slumping 64 paise at day's low of 64.68. The recent trade suggested that the rupee was trading at 64.13 against the dollar as compared to its Friday's close of 64.06 against the dollar.

Banking stocks have also recovered after facing the initial bumps and slumping in the index. The banking index on NSE, Nifty Bank was trading 0.90 percent higher after slumping over 3 percent at day's low in early trade.