After opening the day in the green, share markets in India witnessed positive trading activity, tracking the Karnataka state elections. The markets were decidedly positive in the morning session as the polls showed a decisive BJP victory. However, they soon gave away a 400-point gain as the Congress and allies chipped away at the BJP seats. Volatile election activity meant the stock markets closed the day flat. Sectoral indices were mixed, with stocks in the IT sector and stocks in the metal sector leading the gains, while stocks in the realty sector lost the most.
At the closing bell, the BSE Sensex stood lower by 13 points (down 0.1%) and the NSE Nifty closed lower by 5 points (down 0.1%). The BSE Mid Cap index ended the day down 0.8%, while the BSE Small Cap index ended the day down by 0.7%.
Asian stock markets finished mixed. As of the most recent closing prices, the Hang Seng was down by 1.2% and the Shanghai Composite was up by 0.6%. The Nikkei 225 was down by 0.2%. Meanwhile, European markets too were trading mixed. The FTSE 100 was up by 0.2%, The DAX, was down by 0.1% while the CAC 40 was up by 0.1%.
The rupee was trading at Rs 67.90 against the US$ in the afternoon session. Oil prices were trading at US$ 71.36 at the time of writing.
In news about the economy, India's GDP is set to grow by 7.7% in the January – March quarter, according to a Nomura report.
According to the Japanese financial services major, despite the moderation in March, industrial production growth averaged 6.2% in the January-March period, up from 5.9% in the previous quarter.
According to official data, industrial output growth fell to a five-month low of 4.4% in March due to decline in capital goods production and deceleration in mining activity and power generation. The report states that the uptick in industrial growth is an indicator for recovery in the economy. The report further noted that India is expected to witness cyclical recovery led by both investment and consumption. However, factors like rising oil prices as well as tighter financial conditions are expected to drag down growth rates.
