Sensex opened flat at 35,570 with the early trends indicating a hung Assembly with the BJP leading to 93 seats, Congress 91 and JDS 26. Nifty opened 10 points down at 10,795. The final results of the elections for 208 seats will be available by late afternoon when the counting of the votes will be completed.
Most of the exit polls suggested a hung assembly with BJP might emerge as the single largest party in the Karnataka state elections. The exit polls have indicated 100 seats for the BJP on an average, 88 seats for the Congress and 32 seats for JD(S). If Congress and BJP fail to form the government, then an alliance with JD(S) will be required for the formation of next state government.
The stock markets are expected to go up if BJP wins. This is because 80 percent analysts believe the Nifty will rally if BJP wins while only 5 percent expects markets to fall is BJP comes to power.
According to Kotak Securities, “A victory for the BJP will be received well by the market but a narrow defeat will not dent the market’s optimism regarding the BJP’s chances in the general elections next year. The market has pinned its hopes on earnings recovery and largely ignored the deterioration in the macro, which may weigh on heady multiples.
The report states, “We expect the market to take a BJP victory positively; however, a narrow Congress victory will not lead to a great deal of consternation among market participants with six months to go for the next state elections and 12 months for general elections.”
Voting took place for the Karnataka elections on Saturday May 12 with the turnout of 72.13 percent, the highest since 1952 Assembly polls. Today in the Karnataka Assembly Elections 2018 fate of BJP’s B S Yeddyurappa and Congress’s Siddaramaiah, who is the current chief minister of Karnataka, will be decided.