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Sensex Advances Ahead of Poll Results

With the results for the Parliamentary elections to be unveiled on Saturday, stock markets marched to gains

With the general election results slated for unveiling on Saturday, the stock markets chose to put up a positive face to greet the new government.

Helped, no doubt, by the positive cues from bourses around the world, with both Dow and Nasdaq closing in the green, the Bombay Stock Exchange sensitive index Sensex gained 307.95 points to close the day at 12,180.86 points up by 2.59 per cent. In fact, all the BSE indices finished in the gren: BSE 100 was up by 2.5 per cent, BSE 200 was up by 2.2 per cent, BSE 500 was up by 2 per cent, BSE Mid Cap was up by 1.3 per cent and BSE Small Cap was up by 0.8 per cent.

On the National Stock Exchange, Nifty to gained 81 points to close the day at 3,674.45 points, a gain of 2.25 per cent.

Reflecting the positive news was the market breadth for BSE with declines being outmatched by advances, 1,082 to 1,455 respectively.

Of the Sensex stocks, just four declined while 26 advanced. Among the top gainers was Ranbaxy (7.8%), ICICI Bank (7.3%), TCS (5.1%), Airtel (4.7%) and Grasim (4.6%).

The losers were ONGC, Hindalco, NTPC and ITC.

The reason being attributed for the markets to rise by such a big margin in the midst of uncertainty, was the possibility of the Third Front and especially of the Left, after the Parliamnetary poll results have been declared,  to be power-centres of their own, have receded considerably.

With the Congress- and BJP-led coalitions, the UPA and the NDA, are seen as market-friendly and therefore the punters reckon, they will gain either way.The main drivers of this confidence-building exercise were a host of exit polls, which indicated that the two major coalitions have the best chance for government-formation.

Putting their money on this kind of a reckoning were a huge number of investors and that included the domestic and foreign institutional investors, wuth both of them together investing some Rs 1,400 crore for the day --the former invested Rs 432 crore and the latter Rs 984 crore.

The ultimate fallout of the whole exercise would be seen on Monday, when the markets open after the weekend close.