The 30-share BSE Sensex jumped in early trade on initial buying on the back of higher global advances. Profit-booking soon set in pulling down the key index to 27,506.46, a loss of
195.33 points or 0.71 per cent, snapping three-day winning spree.
Sensex had gained close to 1,000 points or 3.71 per cent in the last three days.
 The NSE Nifty also dropped by 57.00 points or 0.68 per cent to 8,267.00.
"Markets had earlier discounted a clean sweep by BJP in both the states, but now (at market closing hours) it's evident that BJP may alone not be able to form the government in J&K and would need a coalition with other parties to meet the majority number," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 3,35.24 crore yesterday as per provisional data.
"Markets traded in the green in early half in expectation of positive poll result outcome for BJP .... Higher volatility is expected in the market till the time market participants get a clear picture on poll results," said Rohit Gadia, Founder & CEO, CapitalVia Global Research.
If the outcome comes in favour for the BJP then it will result in better implementation of new initiatives, he said, adding that Jharkhand is a state with full of natural resources and it will be a positive factor for companies of metal and energy sector.
Sesa Sterlilte was the biggest loser of the day at 3.15 per cent, followed by Tata Power at 3.09 per cent. Tata Steel (2.15 per cent), HDFC (1.91 per cent), Larsen (1.72 per cent) were other big losers.
Bucking the trend, state-run power producer NTPC rose by 2.88 per cent.
"Failure to pass the GST Bill till now has led to market disappointment as markets had discounted the successful approval of the Bill in the current session itself," said Bonanza Portfolio.


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