What a BJP win in Karnataka means for the Indian stock markets

Investors cheered the trends indicating the Bharatiya Janata Party’s victory in Karnataka assembly elections with the benchmark indices—Sensex and Nifty 50

 

The BJP’s victory in the state election and majority votes for a single party is definitely a positive for investor sentiment, Sudip Bandyopadhyay of brokerage Inditrade Capital told BloombergQuint. “Expect some positive momentum for mid caps and overall market activity for a few days if the BJP wins.”

Here’s what some prominent market experts had to say about Karnataka election results:

Karnataka elections is just a trigger, the market had already bottomed at 9,950 and uptrend was in place. 11,400 was always on cards for the Nifty, it’s just a question of when.
-Jai Bala, Chief Market Technician, Cashthechaos.com

Whilst a BJP win should lend support to equity supports, at these valuations, the direction of the equity market is more likely to be driven by the incipient earnings recovery than by election results.”
-Saurabh Mukherjea, CEO, Ambit Capital

 

Nilesh Shah, Kotak Mahindra AMC

  • Markets to use Karnataka outcome to forecast 2019 polls.
  • Markets want stable, reform-oriented government.
  • Earnings momentum to drive markets going ahead.

Ajay Srivastava, Dimensions Corporate Finance Services

  • Markets happy with stability.
  • Age of large caps is here to stay.
  • Prefer banks, consumer companies in the portfolio.

Ajay Bagga, Market Expert

  • Can see profit booking towards end of the day.
  • Expectations were low, simple majority welcomed strongly.
  • Would wait and watch for other factors like yields, global cues.

Ritesh Jain, BNP Paribas Asset Management

  • Need to run a tighter fiscal policy.
  • Need to ensure lower volatility, stable macros for investors.

Vikas Khemani, Edelweiss Securities

  • Results in line with expectations.
  • Rising crude, interest rates remain a concern.
  • Long-term fundamentals looking positive.


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