Nifty above 5300; Is mkt still hoping for a SP-Cong pact?

As Congress faces rout in Uttar Pradesh, Punjab and Uttarakhand, the market has started putting on a show by recouping losses and getting back above the 5300 level. The market's behaviour has perplexed experts who analyse that possibly it is still expecting a SP-Congress alliance in UP.

The BSE benchmark was up 85 points at 17,447.81 and the NSE benchmark rose 27 points to 5,306.95. Beaten down sectors in early trade too bounced back; banks, capital goods, realty, auto (barring Hero Motocorp) and FMCG stocks were on buyers' radar. However, fall in Reliance Industries, Hindalco, Bharti, Tata Steel and Sterlite has somewhat cropped the upside.

ADAG stocks have been in limelight since yesterday; Reliance Communications, Reliance Power and Reliance Infrastructure were up 1-2%.

In the Uttar Pradesh, Samajwadi Party is the leading party with 122 seats while Mayawati's BSP was leading with just 55 seats.

The Indian rupee slipped below 50 a dollar, down 16 paise.

At 9:19 hours IST: Sensex falls 100 pts ahead of UP election results

The Sensex fell more than 100 points in early trade following weak global cues and ahead of UP Assembly election outcome today. Banks, capital goods and metals stocks were under pressure.

Weaker growth expectations in China and less than expected economic data in eurozone dented sentiment globally, though US economic data was positive. Asian markets like Shanghai, Hang Seng, Kospi and Taiwan Weighted fell 1-1.4%; Nikkei was down 0.44% and Straits Times declined 0.9%.

The BSE benchmark fell 138 points to 17,225.24 and the NSE benchmark was down 44.5 points at 5,235.90.

Jaypee group were biggest losers as UP Assembly election results may not be favouring Bahujan Samaj Party. JP Associates tanked 5% and Jaiprakash Power was down 4%. However, Reliance Power, Reliance Communications and Reliance Infrastructure gained 1-2% as Samajwadi Party is in a leading position as suggested by vote counting.

Among frontliners, DLF, Axis Bank, Hindalco, L&T, BHEL, Bharti, IDFC, Bajaj Auto, Ambuja Cements and Hero Motocorp were down 1-2%.

The CNX Midcap was down 54 points to 7,474. Even the market breadth was negative; about two shares declined for every share rising on the NSE.

In the second line shares, Bajaj Hindusthan and Triveni Engineering gained 1.5%.

IGL was up 2% post the company increased CNG prices by Rs 1.90/kg in Ghaziabad, Greater Noida

Kingfisher Airlines gained 0.65% after Business Standard reports that TPG, Blackstone and Cerberus are eyeing stake in the company.

Thomas Cook was up 1%.