Risk appetite remained frail after assembly election results suggest Narendra Modi will be re-elected as chief minister of Gujarat for third time in a row, defeating ruling Congress party coupled with US fiscal woes.
The Bombay Stock Exchange's Sensex index fell 22 points to end at 19,453.92 while the National Stock Exchange's Nifty-50 index declined 13.20 points at 5,916.40.
BJP surged ahead of challenger Congress in Gujarat in 109 of 168 seats, with Chief Minister Narendra Modi leading from Maninagar but both state Congress chief and leader of Opposition trailing their rivals. Sources in the state election office said BJP was leading in 109 constituencies, Congress in 61, NCP one and others in four.
Global risk appetite was weak too as deteriorating federal budget negotiations in US fueled concern that automatic tax increases and spending cuts will be triggered.
Asian markets ended mixed. Hong Kong's Hang Seng was up 0.16% to 22,660, Japan's Nikkei fell 1.2% to 10,039 and China's Shanghai Composite was up by 0.3% to 2,168. In Europe, France's CAC fell 0.26% to 3,655, Germany's DAX declined 0.3% to 7,646 and UK's FTSE was flat at 5,962 in early trades.
The MSCI Asia Pacific index outside Japan declined 0.3% to 897.
On the sectoral front, top losers included real-esate, power, banks, capital goods while metals,
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