Karnataka Election Result: How will stock market react after BJP’s defeat?

Stock market experts said some correction could be expected on Monday but it should be seen as a buying opportunity by smart investors as only the Karnataka assembly election was at stake for the BJP. In the upcoming major assembly elections, the BJP does not have a major stake as it is an emerging party in Telangana and is in opposition in Chhattisgarh, Rajasthan and Madhya Pradesh. He advised investors to buy mid-cap IT stocks and those stocks which have given strong results in the fourth quarter.

‘Brand Modi’ under scrutiny

When asked about the significance of the Karnataka assembly election result, Avinash Gorakshkar, Head of Research, Profitmart Securities, said, “After the election karnataka election Result 2023, it is only BJP to prove as they have to save their government in Madhya Pradesh and wrest power from Congress party in Rajasthan and Chhattisgarh to establish that there is nothing wrong with Brand Modi. However, the market will definitely react to the results of this state assembly and I am confident that the market can become an ideal selloff till the Lok Sabha elections 2024.”

Avinash Gorakshkar said FII and DII long positions may go long and the market may turn a sideways market which usually happens before important assembly and national elections in a large country like India.

Avinash Gorakshkar said, “Now big investors like FIIs, FPIs and Mutual Funds would like to know how this Karnataka assembly election result has affected Brand Modi as from a strategic point of view Karnataka is the key for the party to establish itself in South India. An important state.”

But how karnataka election result Ravi Singhal, CEO, GCVL Broking said, “The Karnataka election results are not a surprise and the stock market has already discounted the BJP’s defeat in the state assembly elections. Margins will be an important factor and the market will be affected by it.” The bee is looking at it curiously. So, in case of a respectable defeat for the BJP where they settle for around 75 seats, which is possible from the latest trends, I don’t expect much improvement on Monday and Monday. smelly Might be able to defend its current 18,150 support level.”

stocks to buy on monday

Ravi Singhal of GCL Broking said, “Mid-cap IT stocks have given better Q4 results and I expect FIIs to take interest in mid-cap IT stocks in coming correction. So, one should watch Coforge, Birlasoft And continuous system shares if they have any plans to fish in the possible market correction post Karnataka election results.”

Ravi Singhal also advises to look at companies in the auto and banking segments that have declared strong Q4 results and suggests AU Bank and Kotak Mahindra Bank in the banking segment. Maruti Suzuki in the auto segment.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.