Sensex Recovers After Slumping 850 Points: 10 Things To Know

The Sensex nosedived over 850 points in the early trade today as early leads indicated a close fight between BJP and Congress in Gujarat. The Sensex fell to 32,595 at day's low while Nifty slumped to 10,074. Analysts say that the market had factored in a comfortable win for the BJP in Gujarat polls. Beyond the assembly election results, investors will be keeping an eye on global factors like the progress on US tax reforms and crude oil prices. "Globally, eyes would be on US tax bill related developments as well as on crude prices," said Teena Virmani, vice president of PCG Research at Kotak Securities.

10 Things To Know About Sensex, Nifty Fall On Day Of Gujarat Election Results 2017

1) At 9:25 am, the Sensex had pared some losses and was down 650 points. The Nifty was trading at around 10,128, down nearly 2 per cent.

2) The selling pressure was broad-based with all the sectoral indices on the BSE trading in the red.

3) Banking stocks led the decline with the BSE banking index falling over 2 per cent.

4) Adani group stocks fell sharply with Adani Enterprises and Adani Power slumping nearly 7 per cent while Adani Ports and SEZ fell 4 per cent.

5) Among other Nifty50 stocks, Bajaj Finance, Bharti Airtel, HPCL, BPCL and Yes Bank fell 2-3 per cent.

6) Sanjiv Bhasin, EVP-markets & corp affairs, IIFL, said macro factors also remain a worry for the markets. Rising inflation amid a spike in global crude oil prices is a worry for the markets, say analysts, who expect the Reserve Bank of India (RBI) to keep rates unchanged through 2018.

7) Retail inflation in November breached the RBI's medium-term target of 4 per cent, which could put pressure on it to raise policy rates in 2018. Annual inflation of 4.88 per cent last month was the steepest level in 15 months, government data showed on Tuesday, up from 3.58 per cent in October.

8) On the other hand, economic growth is set to accelerate further, according to analysts, after GDP growth recovered to 6.3 per cent in the second quarter. India's economic growth has bottomed out and the GDP growth will recover further to 7 per cent over the next few quarters, Standard Chartered said in a report. The bank forecast a growth rate of 6.5 per cent for the current fiscal year and 7.2 per cent in the year thereafter.

9) The third-quarter earnings of India Inc will be on the radar of analysts from next month.

10) India's second largest software services firm Infosys will announce its earnings for the October-December quarter on January 12, kicking off the Q3 earnings season.