The BJP-led alliance won over 200 of the 288 seats in the Maharashtra assembly that went to polls. The alliance is yet to discuss who will be the CM, but the mood was optimistic. The new prime minister is scheduled to be inaugurated on Tuesday, November 26.
Palka Arora Chopra, director at Master Capital Services Ltd., said stability in Maharashtra could trigger a rebound in the stock market, boosting investor confidence in the infrastructure, urban development and manufacturing sectors, especially those linked to BJP policies.
Meanwhile, the expected return of the JMM-led coalition to power in Jharkhand suggests continuity in social welfare policies, while the results in Jharkhand cannot provide the same level of market enthusiasm as Maharashtra. Acknowledging, Arora said:
The election results mean that not only will the majority be maintained, but it will have much broader powers, which means the general public will be satisfied with the economic policies and there will be continuity in policies, said expert Sandip Sabharwal. “Maharashtra is the second largest state in the country and orders like this here strengthen the overall growth story of the country. So, I think this will be received positively and it comes at a time when the market is not at an all-time high.” He added.
Echoing similar sentiments, Santosh Meena, head of research at Swastika Investmart, said Maharashtra, with NDA’s one-sided victory, is likely to boost bullish sentiments, but global factors will continue to pose significant risks. Expert Ajay Bagga sees immediate impacts: The results don’t last very long. On the ramifications of the results, Bagga said there would be continuity of policy in the state, which has a GSDP of $470 billion. “Maharashtra is an important state for India. It is also home to a commercial capital,” he added. “This result will have a positive impact on foreign investors who see political stability as central, as the coalition alliance won.” The Modi government has thus proven its credentials in leading the coalition alliance to victory, which will help strengthen the credentials of the central government for the next five years. Therefore, foreign investors will see this as a driving force. Trust in the central government of India is high,” Bagga told ET Now.
Meanwhile, in the UP assembly polls, the BJP won two seats and maintained its lead in five other seats. At the time of reporting, the Samajwadi Party was leading in two seats.
Decoding the charts, Meena said Nifty has found strong support at 23,200, which is consistent with the 61.8% retracement of the previous rally from the election day low of 21,281 to the high of 26,277. He added that the index recovered the 200-DMA with the formation of a bullish harami candlestick, signaling a potential trend reversal.
“Immediate resistance lies at 20-DMA at 24,030, a break above this level could push Nifty towards 24,550/25000 levels. On the downside, 23,500, close to 200-DMA, remains an important support level. Similarly, Bank Nifty remains at 200-DMA. It held firm at the DMA and immediate resistance was found above 51,300-52,000. 52,600-53,300,” the analyst said.
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