NEW DELHI: Benchmark indices on a positive note on Tuesday as vote count for the recently concluded Karnataka elections kicked off, with BJP leading with 45 seats, followed by INC (31 seats) and JD (S) (30 seats).
A total of 113 of 222 seats are needed for a majority.
The BSE Sensex which opened on a flat note climbed over 250 points to 35,800 level at around 9.30 am.
The NSE Nifty50 which was testing 10,800 level in the morning trade jumped 51.55 points, or 0.48 per cent to 10,858.15.
The 10-year bond-yield rose 6 basis points while the rupee plunged 25 paise to 67.78 against dollar amid the close election contest.
"We sense the volatility to increase on the event day and Nifty50 may witness wild swings on both sides.
Traders are advised to avoid taking undue risk and should trade with proper exit setup.
Resistance is placed around 10,860, whereas support is placed in 10,740-10,680 range," Angel Broking said in a note.
We will have a wait and watch approach and post-event will re-assess the chart for identifying the next move, the brokerage suggested.
Tata Motors fell 1.8 per cent to Rs 318.30.
Bajaj Auto, Dr reddy's Labs and Adani Ports declined 0.20 per cent each.
A total of nine exit polls predicted 100 (average) out of 222 seats for the BJP, suggesting the party may not be able to form a government in the southern state without the support of JD(S).
According to Kotak Securities, even if the Congress wins the election by a narrow margin, or through an alliance, it will not lead to a great deal of heartburn among market participants as only six months are left for the next state election and 12 months for the general elections to kick off.
Shares of Allahabad Bank plunged nearly 4 per cent in early trade after the bank of Monday said that Reserve Bank has imposed restrictions on its lending to risky assets and raising high-cost deposits in view of deteriorating financial health.