Karnataka election results 2023: On Monday, week ahead, the stock market is expected to respond to the state electorate's rejection of the incumbent Bhartiya Janata Party (BJP)-led state administration.
Stock market analysts sat that the BJP's defeat in the Karnataka elections would unquestionably affect the party's standing in national politics because an INC victory would put Narendra Modi under pressure because Madhya Pradesh, Chhattisgarh, Rajasthan, and Telangana are also holding assembly elections ahead of the 2024 Lok Sabha elections.
In addition, stock market gurus said that just the Karnataka assembly election was at stake for the BJP on Monday, thus prudent investors should view any dip as a buying opportunity. The BJP has no significant stake in the next significant assembly elections as it is a new party in Telangana and is in opposition in Chhattisgarh, Rajasthan, and Madhya Pradesh. They suggested that investors purchase mid-cap IT stocks as well as those that had outstanding Q4 results.
Last week, the local market has had a mixed week with no obvious trend emerging in the frontline indices. However, market participants have adopted a "buy on dips" approach and have purchased all dips, preventing the bulls from going negative. In the previous five trading sessions, the NSE benchmark Nifty 50 breached its prior trading session twice on an intraday basis, but the bulls avoided ending below it. The market's erratic behaviour portends a bull-bear struggle before the results of the state elections in Karnataka.
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