How will Maharashtra poll results impact share market

Mumbai: Voting took place for the State Assembly elections on Wednesday (November 20). Results will be out on Saturday (November 23). In this backdrop, investors wanted to know a possible impact of the poll results on the share market.

Experts said that the Maharashtra poll results will have little impact on the share market. Centrum PMS Chief Investment Officer Manish Jain said, “The Maharashtra election results will not have much bearing on the share market. Market has already slid due to short-selling by FIIs. Not much improvement or reaction is expected on the counting day. Investors should make use of the opportunity and buy good shares.”

Both the state alliances – Maha Yuti and Maha Vikas Aghadi (MVA) – have claimed victory in the elections. DyCM Ajit Pawar claimed that the Maha Yuti would win over 175 seats. On the other hand, the MVA said that the Maha Yuti would lose in the polls.

In a recent note, MacVey analysts said that a Maha Yuti win would strengthen PM Narendra Modi’s hold in the country.

Maharashtra has the second highest number of Lok Sabha seats. According to a MacVey estimate, Maharashtra has the highest share in the country’s GDP (13-14 pc). The State’s per capita income is 30 pc higher than the national average.

The State Assembly election is an important event for the share market. However, analysts said that the share market performance is not solely decided by this factor. Other issues such as world economy and geopolitical conditions, corporate impact and investors’ sentiments were also important.

MAST Capital Services Researcher and Consultant Vishnu Kant Upadhyay said, “Market may surge if a clear verdict is given in favour of a government conducive for business. This will boost investors’ confidence and will attract investment.”

According to analysts, the market is watching geopolitical events, particularly the Russia-Ukraine war as Q2-FY25 results are expected.

Angel One Senior Analyst (Technical and Derivative Research) Osho Krishan said, “Technically, 23,650-23,700 is a big hurdle for Nifty while the 23,800-24,000 level is an impediment for short-term trend reversal.”