The decisive mandate for the BJP-led Mahayuti alliance will calm the nerves for investors, analysts at MOFSL Research said in a note.
The research firm believes a strong performance by the saffron party, which has secured over 120 seats on its own, will bring stability to one of the most important states economically and politically and give a renewed push to infrastructure development.
“The biggest concern after the central election results in June was, how would the BJP perform in the coming state elections because that would have determined the fiscal path which the central and the state government would follow, needless to say the distraction from social media on every little thing that the central government would do,” MOFSL Research said.
However, the staggering victory of NDA should keep all the jitters aside for the markets and may also bring the undercurrents back in the market, it said.
The analysts at the brokerage firm also believes BJP’s victory in both Haryana and Maharashtra will now ensure start of capital expenditure, which is down 17 percent in H1FY25, it said.
“This coupled with recovery in rural spending (on the back of good monsoon and expected strong Kharip output) should improve the demand narrative at the margin. Wedding season in the 2HFY25 (30 percent higher weddings YoY) could also provide a fillip to demand,” the note said.
The BJP-led Mahayuti, which also comprises the Shiv Sena of Chief Minister Eknath Shinde and NCP of deputy CM Ajit Pawar, on Saturday retained power in the state by bagging 230 of the 288 assembly seats. The BJP bagged 132 seats, the Shiv Sena won 57, while the NCP got 41 seats.
The Congress-led Maha Vikas Aghadi’s dream of wresting power fizzled, with the opposition combine managing to garner just 46 seats.
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