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

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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.

Karnataka Election results LIVE updates: Rahul did his best, says Congress

Karnataka Election Result LIVE updates: With Modi wave still riding high, the Bharatiya JanataParty (BJP) on Tuesday forged ahead leading in 113 seats while the ruling Congress, desperate to retain power in the state amid shrinking appeal nationally, suffered major blows and was ahead only in 62 seats constituencies in the Karnataka Assembly polls, according to trends. Karnataka Chief Minister Siddaramaiah trailed in both the constituencies he contested: Badami and Chamundeshwari. In contrast, the BJP's Chief Ministerial face B.S. Yeddyurappa was ahead of hiCongress rival by more than 11,000 votes in Shikaripura. JD(S) was leading in forty seats by 11.30 am.

BJP activists and leaders celebrated noisily in both Bengaluru and New Delhi, waving party flags and shouting slogans hailing Prime Minister Narendra Modi, their main vote-getter, and party President Amit Shah.

There were also celebrations outside the residence of Yeddyurappa, who has been Chief Minister earlier too.

The Janata Dal-Secular of former Prime Minister H.D. Dewe Gowda, which has been expected to play the role of a kingmaker in the event of a hung Assembly, was leading in 40 seats -- the same number it won five years ago.

As the vote count progressed, BJP leaders became assertive, saying they were confident of taking power again in Karnataka while Congress leaders began to speak about the possibility of an alliance with the JD-S.