Karnataka Elections: If BJP Forms Govt Nifty May Hit Peak

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    All eyes are on the results of the Karnataka state elections due on May 15. There could be some strong upward movement should the BJP form the government in the state.

    Karnataka Elections: If BJP Forms Govt Nifty May Hit Peak
    However, all indications are that we may see a hung assembly as per most exit polls. Exit polls, are exit polls and there could be a situation also where there is an absolute majority for one party or the other.
     

    We have seen predictions go wrong in the past exit polls, though most Gujarat exit polls, predicted the BJP to win.

    Nevertheless, a BJP victory and forming a government on its own would mean that the markets could hit historic peak again.

    In the event of a non-BJP government in Karnataka, we see little reason for worry, as there could be a knee-jerk reaction and then it would be business as usual for the markets.

    Every state election from here on would be eagerly watched for cues to see if the Narendra Modi government remains popular and whether there is a possibility of the present dispensation continuing beyond 2019 when elections would be held.

    The markets are unlikely to fall anytime soon and if investors were waiting on the sidelines to buy, they may have to wait a lot more longer. This is because the markets are flush with money flowing into equity mutual funds and there is little hope for a sharp fall.

    As per the data released by the Association of Mutual Funds in India (AMFI), money under management by mutual funds increased by Rs. 1.37 lakh crore to an all-time high of Rs 23.25 lakh crore in April as redemption pressure due to introduction of LTCG tax on equity funds with effect from April 1, 2018 eased.

    So, a small downside in case of an adverse result is likely, though we might see an immediate jump once again, as mutual funds who are sitting on cash rush to buy.

    So, if the BJP forms the government, expect a new peak, and if they do not, expect a small reaction, which will be immediately bought into by mutual funds, who are sitting on a pile of cash. 

    GoodReturns.in 

    Read more about: nifty sensex
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more