Gujarat Polls: Sensex Recovers After Plummeting 850 Points

Market had expected an easy win for BJP in Gujarat, which is why Sensex nosedived when trends showed the opposite.

The rupee also fell sharply by one percent. It is now at Rs 64.50 per dollar. 

(Photo: Reuters)

The Sensex plummeted over 850 points on Monday, 18 December, as the initial trends showed a close fight between the Bharatiya Janata Party (BJP) and the Congress in Gujarat. This happened after trends showed that the Congress was leading with 60 seats, while the BJP was leading with 53 seats.

Sensex dropped to 32,595 at day's low, while Nifty fell to 10,074, reported NDTV.

However, the Sensex later recovered as the BJP raced ahead of the Congress. Earlier on Monday morning, the rupee had also weakened against the US dollar, reported Livemint.

The start was ominous as the benchmark Sensex crashed 867 points to go below the psychological 33,000 while the NSE Nifty plunged 258 points within one hour of counting of votes that showed both the parties were locked in a tight race.

As reported by NDTV, analysts said the initial slump on Monday morning was primarily because the market had expected a smooth win for the BJP, while trends indicated the contrary.

According to Election Commission tally at 5 pm, BJP had won 70 seats and was leading in 29 for a possible total of 99 in the 182-member Gujarat assembly.

In Himachal Pradesh, the BJP won 17 seats and was ahead in 27 seats while the ruling Congress won 10 and was ahead in 11 in the 68-member house. A majority will come with 35 seats.

Adani Group stocks fell heavily along with Adani Enterprises and Adani Power dropping nearly seven percent, while Adani Ports and SEZ fell four percent, reported NDTV.

The 30-share BSE index hit a high of 33,801.90 and settled up 138.71 points, or 0.41 percent, at 33,601.68, its highest closing since 29 November when it had closed at 33,602.76.

The gauge gained 409.93 points in the previous two sessions after exit polls had predicted BJP win in Gujarat and Himachal Pradesh assembly polls.

The 50-share Nifty reclaimed the key 10,300-mark to close higher by 55.50 points, or 0.54 per cent, at 10,388.75, its highest closing since 27 November. It moved between 10,074.80 and 10,443.55 intra-day.

(With inputs from Bloomberg Quint, PTI and NDTV)