Karnataka election results likely to keep Indian markets swinging

The market mood is bullish amid strong inflows from foreign portfolio investors. The benchmark National Stock Exchange Nifty is less than 3 per cent shy of new all-time highs

Equity markets could be put through the wringer, following the Bharatiya Janata Party’s (BJP’s) pounding in the Karnataka state elections.

Typically, state elections have little bearing on the markets but the Congress’ strong showing embolden BJP opponents in the run-up to the 2024 general elections, say experts.

“After the results, people might start believing that there could be a change in regime,” says U R Bhat, co-founder, Alphaniti Fintech.

“Markets may look expensive, given that the general elections are within reach. Election years are generally not good for the markets,” he adds.

The scale of Congress’ victory in the Karnataka Assembly elections was a