Karnataka poll result surprised markets; limited upside from here: U R Bhat

.

It is a good performance by the Bharatiya Janata Party (BJP) in the Karnataka Assembly polls Results and this is being reflected well in the enthusiasm shown by the markets. The upbeat performance at the bourses was warranted, given the surprising outcome.

However, this is as far as the markets will go in the short term. They were already factoring in a good performance – though not exactly a majority – ahead of the poll result. The performance has actually been better than expected.

Going ahead, the markets will now look at domestic and global cues for direction. There are a number of headwinds at the global level that they will have to face now – rising interest rates in the US, geopolitical situation in Iran, crude oil prices and the upcoming US – North Korea meet being some of them. That said, the sentiment will remain upbeat for a few days given the Karnataka assembly election outcome. The Nifty50 can hit 11,000 in the next couple of days.