Markets crash on Bihar poll outcome, Sensex down 308 points

Mumbai, Nov 9 (IANS) Investor sentiments were subdued on Monday, a day after the BJP-lead NDA got a massive electoral jolt in the crucial Bihar assembly polls.

This led a barometer index of the Indian equities to shed 308 points or 1.17 percent during post-afternoon session on Monday.

Both, the indices of the Indian equities markets, which opened in the negative territory, plunged by almost two percent each on the electoral defeat of the Bharatiya Janata Party (BJP) led formation in Bihar.

The BJP-lead National Democratic Alliance (NDA) is considered to be more business and reform friendly.

The Bihar polls outcome is seen as a crucial test for the central government’s popularity with the masses, especially after it failed to pass key economic reforms so far in its short tenure.

The poll outcome has cast a shadow over the central government’s ability in pushing key economic reforms likes the goods and services (GST) and land bill in the upcoming winter session of parliament.

Furthermore, the heightened chances of a US rate hike in December after better-than-expected data released late on Friday and hawkish comments from the US central banks have spooked investors.

In addition, the quarterly results season which has so far been disappointing at best, is expected to remain tepid.

On Monday, the wider 50-scrip Nifty of the National Stock Exchange (NSE) too receded on the back of Bihar polls outcome. It was lower by 94.45 points or 1.19 percent at 7,859.85 points.

Similarly, the 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) plunged in the intra-day trade.

The S&P BSE Sensex which opened at 25,809 points, was trading at 25,957.13 points (at 1.35 p.m.), down 308.11 points or 1.17 percent from the previous day’s close at 26,265.24 points.

The Sensex so far touched a high of 26,007.44 points and a low of 25,656.90 points in the intra-day trade.

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