Indian equity market could take a turn either for better or worse in 2019, depending on the performance of the Bharatiya Janata Party (BJP)-led National Democratic Alliance in the ongoing state assembly elections and next year's General Elections.

Share Market Live

NSE

Sensex could hit 47,000, if the BJP crosses the halfway mark on its own, Karvy Stock Broking said in a report. On the other hand, a loss of power for the NDA and formation of a coalition government could take Sensex down to 30,000.

The Nifty could decline to 9,000, it said. Karvy expects Sensex to reach 45,000 and Nifty to hit 14,000 by the end of 2019.

The benchmark Sensex ended down 0.62 percent to 34,981.02 while the 50-share Nifty declined 0.69 percent to close at 10,526 on Thursday. Indian financial and money markets were shut on Friday for a public holiday.

Karvy's report said that the state polls will be watched as a barometer of what lies ahead, but general elections matter more.

"While it is early days, opinion polls indicate that BJP-led NDA is likely to regain power albeit with a reduced number of seats", the report said, adding this scenario would be welcomed by markets.

The report, however, cautioned against extrapolating from results as the electorate can vote differently in state and general elections.

The BJP and the Congress will face head-on in Madhya Pradesh, Rajasthan and Chhattisgarh in the ongoing assembly elections.

The BJP is in power in all the three states but anti-incumbency is a major factor in Rajasthan where power has alternated between the two national parties since 1993.

In Telangana, the Congress is heading a state-level grand alliance against the regional ruling party - Telangana Rashtra Samithi.

The Congress ruled in Mizoram where smaller regional outfits and the BJP are aiming to unsaddle the party.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.