Maharashtra Election Result: What does the BJP-led NDA victory mean for the Indian stock market? – announced

Maharashtra Election Result: As the BJP-led NDA gears up for a landslide victory in Maharashtra, experts have started thinking about its impact on the NDA. indian stock market Monday is when it will resume trading activities. NDA’s victory in the Maharashtra Assembly Elections will positively impact investors, expecting investors to change their strategy from defensive to aggressive strategy.

Reaction from stock market experts

Talking about the impact of possible landslide victory of BJP-led NDA Maharashtra Assembly ElectionPalka Arora Chopra, Director, Master Capital Services, said: “In Maharashtra, the BJP-led Mahayuti alliance is set to form the government. This outcome is expected to provide political stability and positively impact investor sentiment, especially in the areas of infrastructure, urban development and manufacturing sectors in line with the BJP policies.”

Will the pullback rally continue?

“Stability in Maharashtra could trigger a rally in the region” exchangeIncreased investor confidence due to the continuation of pro-business policies, especially after the uncertainty following previous coalition changes. Also, with a clear mandate, the government is likely to push ahead with infrastructure projects, which are the primary focus of the BJP and will benefit construction, real estate and allied sectors,” said Palka Arora.

Santosh Meena, Head of Research at Swastika Investmart, stated that he expects the Indian stock market sentiment to increase after the Maharashtra Election Result and said: “On Friday, the Indian stock market witnessed a strong rise following the prediction of NDA’s victory in Maharashtra. Now, it is likely that the NDA Government led by the BJP “After looking at the one-sided win in Maharashtra, this is likely to boost market sentiment further.”

stock market strategy

Expecting a change in investors’ stock market strategy, Mahesh M Ojha, Vice President, Research, Hensex Securities, said: “After the Lok Sabha Election Results, Indian stock market investors got defensive and started looking at FMCG and pharma stocks. “But after the Maharashtra Assembly Election Results, they may start looking at railway, infrastructure and banking stocks and change their investment strategy from defensive to aggressive.”

Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “Maharashtra Election Results have revealed that the current government (both in New Delhi and Maharashtra) still has the momentum going. Hence, investors are expected to look at the rail and infrastructure segment as follows: Government of India (GoI) and “The Maharashtra State Government has given special focus to the infrastructure segment and as infrastructure sector companies will look towards taking loans from banks, we may see some buying interest in this sector as well when the market opens on Monday.”

Indian stock market outlook

Nifty finds strong support at 23,200; This is in line with the 61.8% retracement of its previous rally, from an election day low of 21,281 to a high of 26,277. The index reclaimed the 200-DMA with a bullish harami candlestick formation, signaling a potential trend reversal. The immediate resistance is at the 20-DMA at 24,030 and a break above this level could push Nifty towards 24,550/25000 levels. On the downside, 23,500 near the 200-DMA remains a critical support level. Similarly, Bank Nifty remained firm at the 200-DMA with immediate resistance at 51,300-52,000 level and a higher resistance zone at 52,600-53,300,” said Santosh Meena, Swastika Investmart.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We recommend investors consult certified experts before making any investment decisions.