New Delhi. Voting for Maharashtra Assembly Elections 2024 has been completed. This election is presenting a picture of a close contest between the BJP-led Mahayuti alliance and the Maha Vikas Aghadi (MVA). The election results will not only impact the politics of the state, but are also likely to impact the stock market and economic policies of the country.
Analysts believe that major political events like Maharashtra elections can bring short-term volatility in the market. Major indices like BSE Sensex and NSE Nifty are already down 9.76% and 10.50% respectively from their highest levels. There is a possibility of fluctuations in the market after the election results.
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expert opinion
Vinod Nair, Research Head, Geojit Financial Services, said that investors are booking profits before the elections. However, he also said that the recent fall in the market makes it unlikely that prices will fall further. Market recovery will mainly depend on government spending and corporate earnings in the second half.
Maharashtra’s economic contribution and investors’ eyes
Maharashtra contributes a lot to the country’s GDP. In this context, AVP of Master Capital Services Vishnukant Upadhyay said that the state elections can be an indication of the mood of national politics. However, market performance does not depend only on state elections. Global economic conditions, investor sentiment, and corporate profits also play an important role.
Election results and possible policy changes
BJP alliance’s victory: Emphasis on infrastructure, increase in capex, and possibility of policy continuity.
Opposition’s victory: Increase in rural spending and some major infrastructure projects may slow down.
Other scenario: If no clear majority is found, there could be a possible political realignment.
Expectations of economic recovery
Analysts believe that profit booking is being seen in the market before the election results, but to keep the market stable, the role of spending at the government and state level will be important in H2. Also, MK Global says that the results of these elections can be important in deciding the direction of the 2029 general elections.
Message to investors
The Maharashtra election result may bring short-term volatility, but it should not be the main basis for investment decisions. It will be more important for investors to keep an eye on national and international economic indicators.
Tags: business news, stock market
FIRST PUBLISHED: November 20, 2024, 17:32 IST
