Karnataka assembly poll verdict: How brokerages interpret the developments

Karnataka assembly election outcome coupled with sliding rupee and rising global crude oil prices has made investors nervous over the past two sessions. Till Wednesday, the uncertainty had dragged the S&P BSE Sensex over 600 points from its three-month peak level of 35,994 hit a day earlier. 

The election was being dubbed as the semi–final to the 2019 general elections. Besides beefing up the tally in Lok Sabha (Karnataka has 28 seats) and Rajya Sabha (12 seats), this election was important for the Bharatiya Janata Party (BJP) to make in-roads into south India – a region that has proved difficult for it to foray into. The state is significant for the Congress as well, which has been facing a tough fight with BJP in most of the states it used to rule.

Here is how leading brokerages and research houses interpret the election outcome and its implications for the market:

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