MUMBAI: Expectations of a BJP victory in Karnataka assembly election lifted the key Indian equity indices during the mid-morning trade session on Tuesday.
According to market observers, broadly subdued Asian indices, and disappointing macro-economic inflation data points released on Monday capped some gains.
Sector-wise, healthy buying was witnessed in banking, capital goods, metals, consumer durables and automobile stocks.
Around 10.25 a.m., the broader Nifty50 of the National Stock Exchange (NSE) traded at 10,921.80 points -- up 115.20 points or 1.07 per cent -- from its previous close.
The barometer 30-scrip Sensitive Index (Sensex), which opened at 35,537.85 points, traded at 35,966.64 points -- up 409.93 points or 1.15 per cent -- from its previous session's close of 35,556.71 points.
Sensex has so far touched a high of 35,993.53 points and a low of 35,498.83 points during the intra-day trade.
"Early trend shows that the possibility of hung assembly has reduced. Markets could react positively if this trend gets confirmed later. However, beyond today what will drive India's equity markets in the near term is not the outcome of these elections or any political issues, but the country's macros," said Deepak Jasani, Head of Retail Research, HDFC Securities.
Geojit Financial Services Chief Market Strategist Anand James said that high voter turn out in Karnataka elections has brought in risk capital into the market.
"Much of such money had earlier gone into index and a few set of stocks, but mid and small cap indices looks to have caught up today, which is also a testimony of positivity by way of increased earnings visibility," James said.
On May 14 -- the previous trade session -- both the key indices closed on a flat-to-positive note as caution prevailed ahead of the Karnataka assembly election results and a rise in the April wholesale inflation rate.
Consequently, the NSE Nifty50 closed flat at 10,806.60 points.
Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE had made gains. It closed at 35,556.71 points -- up 20.92 points or 0.06 per cent -- from its previous day's close.