The Sensex nosedived over 850 points in the early trade today as early leads indicated a close fight between BJP and Congress in Gujarat. The Sensex fell to 32,595 at day’s low while Nifty slumped to 10,074. But the Sensex later recovered as the BJP pulled ahead of the Congress. Analysts say that the market had factored in a comfortable win for the BJP in Gujarat polls. Beyond the assembly election results, investors will be keeping an eye on global factors like the progress on US tax reforms and crude oil prices. “Globally, eyes would be on US tax bill related developments as well as on crude prices,” said Teena Virmani, vice president of PCG Research at Kotak Securities. Monday will mark the start of a likely volatile week for the market. Dalal Street is likely to see a positive opening, but as the session progresses, the market would start reacting in a somewhat volatile way to the election outcome once they start pouring in. Any unexpected outcome may dent market outlook. But if nothing untoward happens on Monday, the market will continue to witness heavy short covering like on Friday and inch higher.