The exit polls on state assembly elections has made investors jittery. Investors are bracing for the state election results that will be out today. Domestic market is expected to follow weakness in other Asian shares amid rising tensions between the US and China as well as disappointing Chinese trade data for November.
In a shock move, Reserve Bank of India (RBI) governor Urjit Patel resigned on Monday. Officially, his resignation letter cited personal reasons for the abrupt exit though it is apparent that Patel was a victim of the messy face-off between RBI and the government.
Kotak Mahindra Bank (down 6.42%), Reliance Industries (down 3.83%), Adani Ports & Special Economic Zone (down 3.76%), Asian Paints (down 3.45%), Tata Motors (down 3.35%), Sun Pharmaceutical Industries (down 2.82%), HDFC (down 2.19%) and Infosys (down 2.03%), were the major Sensex losers in yesterday’s trade.
On the political front, market participants are awaiting poll results of five state elections due on December 11, 2018. The outcomes of the assembly elections will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana took place on 7 December 2018.
Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election in Chhattisgarh Assembly was held in two phases on 12 and 20 November 2018. The counting of votes in all the states will be done on 11 December 2018.
Exit polls on Friday reportedly indicated that the Bharatiya Janata Party risks losing control of Rajasthan to the Congress and faces a close fight in Madhya Pradesh and Chhattisgarh.