Indian stock markets began in negative territory on Wednesday following the decline on Wall Street and the dramatic outcome of Karnataka Elections in which Modi-led BJP won the maximum seats beating Rahul Gandhi-led INC and H D Deve Gowda-led JD(S) but failed to clinch the majority. In the much-anticipated results of Karnataka Elections 2018, BJP (Bharatiya Janata Party) emerged as the largest party in terms of seat share and INC (Indian National Congress) seat count settled at 78 while JD(S) managed to book 37 seats.
Following the blow from the cliffhanger outcome of Karnataka Elections 2018 and subdued global cues led by US equities, the domestic markets extended losses after opening marginally lower with Sensex plunging about 300 points and Nifty sliding down nearly 100 points. A downtick in the shares of heavyweight companies such as ICICI Bank, Reliance Industries (RIL) and State Bank of India (SBI) steered the headline indices into losses.
Shares of ICICI Bank, Hero MotoCorp, SBI, Adani Ports, ONGC, RIL, Axis Bank, Coal India, Bajaj Auto, M&M and L&T were the biggest laggards among the components of BSE Sensex losing more than 1% each while, on the other hand, shares of Wipro, Tata Steel and TCS were the only marginal gainers among the constituents. The S&P BSE Sensex shed as much as 300.56 points to a day’s bottom of 35,243.38 whereas NSE Nifty plummetted 99.15 points to a day’s low of 10,702.7 on Wednesday.
All the sectoral indices of National Stock Exchange (NSE) were trading in red barring Nifty Realty and Nifty IT with Nifty PSU Bank, Nifty Private Bank, Nifty Bank and Nifty Financial Services being the top losers. A heavy rout in the shares of PNB, SBI, Syndicate Bank, Allahabad Bank and Bank of Baroda led the benchmark Nifty PSU Bank index to drop more than 3.5%.
A surge in US government bond yields to their highest level in almost seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China, Reuters said in a report. The Dow Jones Industrial Average fell 193 points or 0.78% to 24,706.41, the S&P 500 lost 18.68 points or 0.68% to 2,711.45 and the Nasdaq Composite dropped 59.69 points or 0.81% to 7,351.63.