Insights From Experts News24 –

Maharashtra Assembly Elections: All the elections held in this democratic country have always had some impact on various sectors, whether positive or negative. Today, with the Maharashtra assembly election underway and the stock market closed, let’s peek at what experts say about Maharashtra Assembly Elections and stock market!

After reading all the quotes by experts and analysts across different reports, it turns out that market enthusiasts and investors need not worry about the impacts of the assembly election, as they anticipate that the market will see very minimal effects.

What Could Be The Aftermaths Of Maharashtra Assembly Elections-

According to different reports, analysts anticipate a close fight between the BJP and Congress alliances. If the BJP-led alliance stays in power, the policies introduced by the party will continue and may witness improvements and amendments for betterment. The policies right now emphasize infrastructure and capital expenditure. The other scenario would see a Congress-led alliance coming into power, which may result in a revamp of policies. According to their manifesto, it will emphasize the welfare of rural areas and a slowdown of some infrastructure projects.

Analysts are keeping an eye on the policy announcements. Any change or amendment in the policies could shift the sentiments of the investors, giving the market a temporary effect.

Here Is What The Experts say-

According to a report by Business Standard, any change in policies impacts Maharashtra-based firms and, hence, the market too.

“The concerns that some investors may have is that a government led by MVA could perhaps give lower priority to some of the infrastructure projects compared to MYA (BJP-led alliance). Hence, we think it becomes imperative to closely track some of the major projects that have been planned in the state and the implications for companies that are involved in executing those projects,” wrote Suresh Ganapathy, Aditya Suresh and Punit Bahlani of Macquarie in a recent note.

“Market expansion can only be fueled by a clear mandate for any business-friendly government that will increase investor confidence and draw in investments,” said Vishnu Kant Upadhyay, assistant vice-president for research and advisory at Master Capital Services.

Technically, 23,650-23,700 remains a strong resistance for the Nifty, Osho Krishnan, senior analyst for technical & derivatives research at Angel One said, while 23,800-24,000 remains a hurdle for a trend reversal in the near-term. “On the lower end, 23,400-23,350 is likely to serve as an intermediate support level. Should this be breached, there is a potential for further downward correction toward 23,200-23,100 levels,” he said.

According to Mint reports, market experts said the market is unlikely to see a major long-term impact.

According to Narendra Solanki, the head of fundamental research—investment services at Anand Rathi Shares and Stock Brokers, “The markets may react cautiously as they wait for clarity on the new government’s stance on policy matters and their approach to economic and social issues. This period of indecision may last until the new government settles in and clarifies its priorities and policy direction,” said Solanki.

Arpit Jain, Joint MD, Arihant Capital said, “Further sell-offs could occur if the BJP-led alliance faltered in key states such as Maharashtra. However, rather than focusing solely on state election outcomes, investors may consider gradually building positions and reducing cash exposure as part of a disciplined long-term strategy.”

Let’s Wait And Watch!