UP Polls: Market to be relieved tomorrow; Nifty may hold 5200

The Indian market took a hit as traders turned cautious ahead of tomorrow's election results. It was a day of weakness at the bourses with no sign of any recovery throughout the day.

The Nifty completely lost its hold over the 5,300 levels losing 79 points. It closed at 5,280.35. The Sensex too fell 274 points or 1.55% and ended at 17,362.87.

One of the three key events for the Indian market - Uttar Pradesh elections outcome - will unfold tomorrow. Samajwadi Party is hopeful of getting a majority in UP.  However, exit polls are predicting a hung Assembly in Uttar Pradesh.

Experts believe that the market would be relieved post the election results. They don't expect the Nifty to go below 5,200 very decisively.

Portfolio manager PN Vijay wouldn't be surprised to see the market sharply up post the election results. "The market would be relieved post the outcome. After the first three years of Manmohan's government, it has been a wash out. There is an inclination that the Congress, especially after what it has done on the power and coal side, will get its act together. That will be hugely positive for the market. The market is not too interested in UP, but on the impact of UP on the centre. If this dispensation comes, we could say that the mid-term elections have been quite favourable for the market," he explains.

Meanwhile, Prakash Diwan of Asit C Mehta Investment says, the market could see a little bit of a reaction tomorrow, once the number starts coming in. "My sense is that by the time the numbers come through, the data get assimilated, people do their math, the market could react a bit lower. That's the time when some significant buying should also start stepping in. So, the Nifty is not going to breach that 5,200 level very decisively and stay there," he adds.