Sensex loses nearly 250 points on political uncertainty, global cues

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The benchmark BSE Sensex lost nearly 250 points in early trade today amid uncertainty over the government formation in the southern state Karnataka.

The 30 share barometer was trading lower by 245.23 points (-0.69 percent) at 35298.71.

Yesterday the gauge had gained over 400 points intra-day after BJP emerged as the single largest party in Karnataka results. However, the index gave up all gains to end modestly lower after Congress-JDS alliance staked claim to form the government.

Sectoral indices led by oil and gas, PSU, bankex and healthcare were trading in red, down by up to 1.90 percent.

The broader 50 share Nifty of the National Stock Exchange too fell 72.85 points (-0.67 percent) to 10729.

Apart from political uncertainty in Karnataka, a weak trend in other Asian bourses following overnight losses at the Wall Street dampened sentiments, brokers said.

Global markets were stumped after N Korea canceled high-level talks with Seoul and threatened to call off the much-awaited summit with the US if it was pushed into unilaterally giving up its nuclear arsenal.

Back home, Trade deficit widened to USD 13.7 billion in April, which further affected trading sentiment.

Major laggards were Hero MotoCorp, Adani ports, SBI, Axis Bank, ONGC, Bajaj Auto, IndusInd Bank, Coal India, M&M, NTPC and Bharti Airtel falling over 3 percent.

Meanwhile, on a net basis, Domestic Institutional Investors (DIIs) bought shares worth Rs 531.33 crore while Foreign Portfolio Investors (FPIs) sold shares to the tune of Rs 518.47 crore on Tuesday, provisional data showed.

In other Asian markets, Hong Kong’s Hang Seng was down by 0.49 percent while Japan’s Nikkei shed 0.38 percent. China’s Shanghai Composite Index too inched 0.25 percent.

The US market ended 0.78 percent lower in yesterday’ s trade.

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