Maharashtra Elections 2024: Impact on Nifty & Sensex

Maharashtra Elections 2024 begins today, due to this BSE and NSE are shut and no trading will happen. However, Investors are closely watching the Maharashtra Assembly Elections updates which can impact the market in the short-term.

As of now, huge FII selling is the major concern for the investor. Yesterday, Ukraine fired missiles in Russia for the first time, which has triggered the sudden sell off in Nifty, Sensex and other indices. On Tuesday, session markets closed with the bearish note and also witnessed a sudden rise in volatility. 

Maharashtra Elections 2024 Results

Maharashtra Elections 2024 Results will decide the next direction of markets in the short-term. The current government in Maharashtra is Shiv Sena and its Chief Minister is Eknath Shinde. 

There is talk in the town that the BJP is expected to gain the majority in the Maharashtra Assembly Elections. So, the question is how Nifty, Sensex and other market Indices can react after Maharashtra Elections results. 

Nifty struggled to hold the 23500 support in the Tuesday session and witnessed a sharp sell-off after facing resistance from 23780. India Vix suddenly rises 3% and reaches 15.66 level. In this coming week, volatility is expected to increase more due to elections.

Maharashtra Elections 2024: Impact in Sectors

From a market perspective, short-term volatility around the Maharashtra election result declaration is expected. Particularly in state-linked sectors like infrastructure, real estate, and PSU banks. 

However, the structural market impact should remain contained given the overall stability of the current government. Sectors like infrastructure, urban development, and consumer discretionary may see heightened activity post-elections, while defensive sectors could outperform during the immediate result period. 

Nifty Before Maharashtra Elections 2024

Nifty Before Maharashtra Elections is bearish and struggles to hold the 200 day EMA support.

The Nifty 50's late-hour reversal on Tuesday, which erased most of its intraday gains, reflects concerns weighing on investor sentiment. 

While the Nifty index managed to close 0.28% higher at 23,518.50, breaking a seven-day losing streak. The sharp downfall in the final hour indicates continued selling pressure from institutional investors, particularly FPIs who have already offloaded Rs 23,913 crore this month. 

The late selloff appears driven by a combination of factors. The factors are FII selling, disappointing quarterly results, Ukraine- Russia Disputes.

Indicators suggest sellers at higher levels, with the Nifty still trading 10.5% below its September peak of 26,277. While India's macro fundamentals remain strong, we believe the market needs stronger Q3 earnings visibility to establish a sustainable recovery trend.