MARKETS LIVE: Indices range-bound; autos fall; Karnataka poll outcome key

ELECTIONS & MARKETS Markets are not factoring in Karnataka poll outcome yet, say analysts   Markets have not yet priced in the possibility of a loss for the Narendra Modi-led Bharatiya Janata Party (BJP) in the upcoming assembly election in Karnataka. Though analysts expect a knee-jerk reaction to the outcome on May 15, they believe the markets will start focussing on other global and domestic events soon after.   Nilesh Shah, managing director at Kotak Mahindra Mutual Fund believes the S&P BSE Sensex could dip sharply if the BJP loses Karnataka. He, however, expects the recovery to be equally swift. A win, on the other hand, could take markets higher. Photo: Shutterstock.com RBI's cash infusion not enough to cheer market, arrest Rupee's slide   Bond investors are finding out that the Reserve Bank of India isn’t as generous as they thought.   Sovereign debt declined for a third day Friday, wiping out gains fueled by the RBI’s May 4 decision to inject cash by buying bonds. The measure has failed to revive demand for debt as it simply restores the cash drained by the authority to prop up a sliding rupee, traders say. READ MORE Top BSE500 gainers COMPANY PRICE() CHG() CHG(%) VOLUME SUN TV NETWORK 964.55 99.90 11.55 467414 PARAG MILK FOODS 342.55 35.20 11.45 588950 PHOENIX MILLS 649.75 38.80 6.35 8660 SOUTH IND.BANK 27.00 1.45 5.68 1759875 SHARDA CROPCHEM 448.20 21.65 5.08 24986 » More on Top Gainers Declining sale of key drug weighs on Sun Pharma, stock down 7% in 2 days   The Sun Pharma stock has shed seven per cent over the past two trading sessions, as the declining sales trend for a key specialty product, coupled with worries over continued price erosion, weighs on the drug major’s revenues and earnings. Given that specialty products are expected to be the mainstay of Sun Pharma’s revenue growth amid rising pressures in the generic business, hurdles for its specialty pipeline would have an impact on earnings.   One such specialty product whose revenues are under pressure is acne drug Absorica. Kartik Mehta of Deutsche Bank says that revenues from the drug declined 26 per cent on a sequential basis to $89 million in the March quarter. Absorica is a key product for Sun Pharma, with sales of about $200 million in FY18. READ MORE Morgan Stanley on global growth We expect global growth to stay strong at an above-trend pace over the forecast horizon, averaging 3.9%Y in 2018 and 3.8%Y in 2019. The cycle is being sustained by strong investment and improving productivity growth. Moreover, there are limited signs of misallocation across DM and EM (except in some segments of the US private corporate sector). While inflation is set to rise in both developed markets (DM) and emerging markets (EM), it is projected to stay around central banks’ targets. In DM, we expect core inflation to rise, driven by a further tightening of labour markets and rise in capacity utilisation. However, more moderate wage growth than at this stage in past cycles and structural factors such as technology diffusion and globalisation should continue to keep upward pressures in check. (Source: Morgan Stanley report) Equity mutual funds garner Rs 124 bn in April; drive AUM to record Rs 8 trn   Investors have pumped in a staggering over Rs 124 billion in equity mutual funds in April, driving the assets under management to a record Rs 8 trillion. This is much higher than over Rs 66.5 billion inflow seen in such schemes in March, according to the data from the Association of Mutual Funds in India (Amfi). The strong inflow has pushed the asset base of equity mutual funds (MFs) by more than 6 per cent to Rs 8 trillion at the end of April from Rs 7.5 trillion in the preceding month.READ MORE