What impact can Maharashtra elections have on the Indian stock market? experts are considering

Maharashtra result assembly elections According to experts, it is expected to have minimal impact on the Indian stock market, although it may have significant political implications. Although state elections do not directly impact the functioning of the central government, they may have some secondary effects.

Voting is to be held in Maharashtra on Wednesday, November 20.

Experts highlight a tough fight between the BJP and Congress-led alliances. The return of the BJP-led alliance would signal policy continuity with an emphasis on infrastructure and capital expenditure, while a victory for the Congress-led alliance could lead to a change in policies and perhaps a greater emphasis on rural welfare and There may be a slowdown in some basic projects. ,

“A victory for the BJP-led coalition would signal policy continuity with an emphasis on infrastructure and capital expenditure. A victory for the Congress-led coalition would boost rural spending and a possible slowdown in some key infrastructure projects. On fiscal discipline “One has to keep an eye on Maharashtra, given the rising state debt and two decades of fiscal indiscipline,” MK Global Financial Services said.

What impact can Maharashtra elections have on the Indian market?

Assembly elections may affect market sentiment temporarily, but they are unlikely to leave a lasting impact on the market.

Victory or defeat in these elections can affect public perception, trust and the popularity of the ruling or opposition party at both the state and national levels. This change in trust may indirectly influence certain policy decisions and even the central government’s stance on certain issues.

According to Narendra Solanki, head of fundamental research-investment services at Anand Rathi Shares and Stock Brokers, we may not see a major change in the current policy trajectory if the current party retains power. Continuity will likely ensure extension of existing policies and expenditure patterns. This stability may provide a sense of predictability for investors and markets, as the direction of governance is expected to remain the same.

However, Solanki said there could be a temporary period of uncertainty if a new party takes control.

“Markets may react cautiously as they await clarity on the new government’s stance on policy matters and its approach to economic and social issues. This period of indecision may continue until the new government settles in.” and does not clarify its priorities and policy direction.” Solanki.

Abhishek Jain, Head of Research, Arihant Capital, underlined that the Indian market is experiencing a volatile and corrective phase ahead of the assembly elections, mainly driven by cautious sentiment over the possible performance of the BJP.

Additionally, global factors have also played a role, with capital outflows from emerging markets such as India and South Korea to developed markets.

“There could be more selling if the BJP-led coalition in key states like Maharashtra falters. However, rather than focus solely on state election results, investors may want to gradually build positions and cash out as part of a disciplined long-term “Can consider risk mitigating strategies,” Jain said.

Vishnu Kant Upadhyay, AVP of research and advisory at Master Capital Services, said Indian benchmark indices made a strong rally ahead of Maharashtra state assembly elections on November 20.

Upadhyay said a clear mandate for a business-friendly government could boost market expectations, which would boost investor confidence and attract investment.

“Elections in Maharashtra are important and can impact the stock market as the state is one of the most industrialized states of India and contributes significantly to the country’s GDP,” Upadhyay said.

“After the formation of the new administration, investors will keep a close eye on the policy announcements. Although the elections in Maharashtra are an important event for the stock market, the market performance is not entirely determined by them. Additionally, including the state of the world economy The factors, company profits and investor sentiment are also very important,” Upadhyay said.

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