The Maharashtra Election 2024 has been one of the crucial factors for the markets. Maharashtra is not just a major industrial hub but also accounts for nearly 13-14% of the country’s GDP. It attracts over 30% of FDO and the policitical future of the state is something that India Inc and stock markets are keeping a close eye on. The markets have corrected nearly 10% from recent highs and most experts believe that a clean sweep by the opposition could extend the correction phase significantly.
Maharashtra Elections 2024: Not a big factor at the moment
A close look at trade over the last few days indicate that investirs have been in wait and watch mode and there has been some profitbooking too.
Market veteran, Nilesh Shah, Managing Director – Kotak Mahindra Asset Management explained that there may not be a big impact if it is a close contest-
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“No material impact is expected in case of a close contest. If opposition does a clean sweep than yes markets will correct a little more”
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According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, “Markets are likely to consolidate for some more time. Q3 earnings and Budget expectations are going to be the next big triggers. The state election result is a small factor. This is not a make or break election for the market. Real estate and clutch of other industries governed by state policies may see some sentiment reaction but no long-term impact. The key economic policies are mostly decided by the Centre. In the current market environment, the major concern is the geo-political situation over next few days along with Crude prices . Inflation is a key concern back home. Possibilities of the Chinese economy remaining under pressure could turn the FII outflow tide. Rate cut is unlikely anytime before February- that’s another crucial trigger.”
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