Out of the 288 assembly seats in Maharashtra, the BJP-led alliance crossed the 200 mark. While the coalition is yet to decide on who will be the chief minister this time, the mood was upbeat. The new chief minister is scheduled to take oath on November 26, Tuesday.
Palka Arora Chopra, director of Master Capital Services Ltd, said stability in Maharashtra could boost stock markets, especially in the infrastructure, urban development and manufacturing sectors, which are in line with BJP’s policies.
Meanwhile, the expected return of the JMM-led coalition in Jharkhand indicates continuity in social welfare policies, Arora said, adding that Jharkhand’s results may not provide the same level of market enthusiasm as Maharashtra.
The election results suggest that not only the majority has been retained but with a broader mandate, which suggests that people in general are happy with the economic policies and there will be policy continuity, said expert Sandip Sabharwal. “Maharashtra being the second largest state in the country, such an order from here also strengthens the overall growth story of the country. So, I think it will be taken positively and it has come at a time when there is no impact on the markets. All-time high,” he added.
Echoing a similar sentiment, Santosh Meena, head of research at Swastik Investmart, said that while Maharashtra, where the NDA witnessed a lopsided victory, is likely to fuel bullish sentiment, global factors will pose significant risks.
Expert Ajay Bagga sees the results as immediate and not too permanent. On the outcome of the results, Bagga said there will be continuity of policy in the state which has $470 billion of GSDP. “It (Maharashtra) is an important state for India. It also has a commercial capital,” he added.
“The results will have a positive impact on foreign investors who look out for political stability at the Center as the Gathbandhan coalition has won one of the key seats. So, the Modi government has proved its credibility to lead the Gathbandhan coalition to victory, and it will be his for the next five years. Therefore, foreign investors will see this as building confidence in India’s central government as it helps strengthen the central government’s identity,” Bagga said. ET Now.
Meanwhile, in the UP assembly by-elections, the BJP won two seats while maintaining its lead in five others. Samajwadi Party was leading in two seats at the time of filing the story.
Decoding Charts, Meena said the Nifty found strong support at 23,200, setting a 61.8% retracement of its previous rally from the election-day low of 21,281 to a high of 26,277. The index recovered its 200-DMA with a bullish bearish candlestick formation, signaling a possible trend reversal, he added.
“The immediate resistance is at the 20-DMA of 24,030, and a breakout above this level will push the Nifty towards the 24,550/25000 level. On the downside, a crucial support level remains at 23,500, near the 200-DMA. Similarly, the Bank Nifty has an immediate resistance. Also held firm at its 200-DMA Higher resistance zone at 51,300–52,000 and 52,600–53,300,” this analyst said.
(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)
Maharashtra Poll Results 2024 Highlights
Jharkhand Poll Results 2024 Highlights
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