The street is already pricing in a second term by the Mahayuti alliance in Maharashtra, according to market observers. If the results are on these expected lines, big moves are unlikely in the market on Monday.
The markets staged a smart recovery on Friday ahead of the election results announcement on November 23. Most of the exit polls predicted a clear win for the Mahayuti alliance in Maharashtra. According to market experts, this is a result that’s factored in by the market and will lead to a sentimental positive. However, a clean sweep by the opposition could lead to a knee-jerk market movement on Monday morning. The exit polls do not seem to suggest so but the past few election results have starkly contrasted to the exit polls.
According to analysts, the Maharashtra Assembly Elections will also not have a big impact if they are on expected lines but may lead to some short-term volatility. If the exit poll results are mirrored, this will be the second consecutive term for the BJP-led Mahayuti banner in Maharashtra, following Haryana, which means people still have confidence in the current government. Also, this is seen as a positive signal for renewed government-led capital expenditure initiatives.
“…market sentiment was buoyed by exit polls from the Maharashtra election, indicating a likely victory for the Mahayuti alliance,’ said Vishnu Kant Upadhyay, Assistant Vice President of Research and Advisory at Master Capital Services.
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Going forward, Vinod Nair, Head of Research at Geojit Financial Services said that most of the state elections are now over, and the market may find stability as government spending will improve in the coming months to meet the FY25 capex target. “This in turn supports private spending. Good monsoons, festivals, and marriage seasons may colour consumption demand,” said Nair.
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The outcome of elections can shape public perception, influence confidence, and impact the popularity of the ruling or opposition parties at both state and national levels, said Narendra Solanki, Head of Fundamental Research and Investment Services at Anand Rathi Shares and Stock Brokers. “This shift in public sentiment may, in turn,
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