Stock market today: Extending the Friday pullback rally on Monday, the Indian stock market witnessed decent buying during early morning deals. The frontline indices surged up to 2 per cent in the Opening Bell.
Highlighting the reason for the rise in the Indian stock market after the landslide victory of the BJP-led NDA in the Maharashtra Assembly Election, Palka Arora Chopra, Director of Master Capital Services, said, “In Maharashtra, the BJP-led Mahayuti alliance is set to form the government. This Maharashtra Election Result is expected to provide political stability, positively impacting investor sentiment, especially in infrastructure, urban development, and manufacturing sectors aligned with BJP policies.”
“The stability in Maharashtra could trigger a rally in the stock market, boosting investor confidence due to the continuity of pro-business policies, especially after uncertainty following previous coalition shifts. Furthermore, with a clear mandate, the government will likely push forward with infrastructure projects, a key focus of the BJP, which would benefit the construction, real estate, and related sectors,” Palka Arora added.
On how Maharashtra Election results are connected to the Indian stock market, Mahesh M Ojha, AVP—Research at Hensex Securities, said, “After the Lok Sabha Election Results, Indian stock market investors went defensive and started looking at FMCG and pharma stocks. However, after the Maharashtra Assembly Election Results, they may start looking at railway, infra, and banking stocks, changing their investment strategy from defensive to aggressive.”
Rail, infra, banking stocks in focus
Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The Maharashtra Election Results have established that momentum is still with the incumbent government (both at New Delhi and Maharashtra). So, investors are expected to look at the rail and infra segment as the Government of India (GoI) and Maharashtra State Government have showcased a special focus on these segments. As infra sector companies would go for credit lines from the banks, banking stocks may also see some buying interest when the market opens on Monday.”
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