It’s a holiday shortened week but packed with action for the markets. Most importantly the markets will remain shut on November 20 on account of Assembly elections in Maharashtra. The markets have been under pressure and investors will closely watch domestic events and global developments For cues ahead. The key factors to watch next week include the Maharashtra Assembly elections, Q2 earnings reports from mid and small-cap companies, and upcoming IPOs and listing.
Maharashtra Assembly elections
The upcoming elections in Maharashtra is one of the most anticipated events this week. Maharashtra is a key contributor to India’s GDP and an important automotive hub. The state has been attracting fair bit of FDI inflows as well.
After the Lok Sabha elections, Maharashtra’s Deputy CM presented a state budget with populist measures. One major proposal announced was the cash aid for women in low-income households. However, these steps can also push the fiscal deficit further. Also BJP led Mahayuti is known for keeping Infrastructure projects on high priority and that could change if there not in power.
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Another major deciding factor could be the farmers of Maharashtra. The soybean and cotton prices are a major concern for the Mahayuti alliance as Maharashtra heads to polls on November 20. In the 2024 Lok Sabha elections, key constituencies in cotton and soybean regions played a decisive role in the Mahayuti alliance’s defeat. These issues could impact voter sentiment in the upcoming assembly elections which could also impact sentiment in the stock market.
The Voting for the 288 seats in the Maharashtra legislative assembly will be held in a single phase on November 20 and counting is scheduled on November 23.
Industry Updates
Though the fair bit of earnings are already announced, some mid and small-cap earnings are expected this week. Investors will be looking for any signs of growth, margin pressure, and guidance for the coming months. The sector-specific reports, especially in IT, banking, and automobiles, could provide fresh insights into the economic recovery or challenges in the second half of FY24.
Upcoming IPOs
The NTPC Green Energy IPO will open on November 19 and close on November 22. The company plans to raise Rs 10,000 crore by issuing 92.59 crore fresh shares.
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