May 12, 2009 / 4:09 AM / 11 years ago

BSE Sensex to fall on poll concerns, weak Asia

MUMBAI (Reuters) – The BSE Sensex is expected to drop on Tuesday, as investors extend profit-taking after a nine-week rally, amid concerns national election results due on the weekend may produce a fractured mandate.

A stockbroker uses his terminal to trade at a brokerage firm in Mumbai in this September 30, 2008 file photo. REUTERS/Punit Paranjpe/Files

The market has fallen for two sessions after rising 50 percent since early March. Investors are worried neither the ruling Congress party coalition or the main opposition Bharatiya Janata Party-led group will win a clear majority, leaving the

possibility of a loose coalition of regional parties.

“There is complete lack of clarity on the election front, and international markets are down as well,” Arun Kejriwal, a strategist at research firm KRIS, said.

“However, if shares go down about 150 points, there may be a slight rebound,” he said.

Asian markets were lower, with Japan’s Nikkei down 1percent by 0349 GMT, while MSCI’s measure of other Asian markets fell 1.2 percent.

Nifty futures traded in Singapore were flat, pointing to a cautious opening in India.

Investors will watch India’s industrial output data, exected at about noon (0630 GMT), which is likely to have shrunk in March from a year earlier, its third fall in four months, as the global economic slowdown hit exports and domestic demand remained soft, a Reuters poll showed.

On Monday, the 30-share BSE index fell 1.63 percent to 11,682.99, its lowest close since April 29, and followed a 2 percent drop in the previous session.


* Motilal Oswal Financial Services, after the financial services firm posted a 23 percent rise in March-quarter net profit.

* India’s largest beer maker, United Breweries, after the Economic Times said it would bottle and distribute Heineken brands in the country and get a one-time fee

of 3 billion rupees ($60.5 million).

* Companies reporting results on Tuesday include Kotak Mahindra Bank, Asian Paints, J.B. Chemicals and Hinduja Ventures.

(For Quotes and Interactive Charts of BSE Sensex click here)

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