Election 2024 And Stock Market - NDA’s Victory To Lift Market Sentiment; Growth Pick-Up Crucial: Motilal Oswal

Motilal Oswal Report

The staggering victory of the ruling NDA alliance in Maharashtra should bring the undercurrents back in the markets, in our view. For Maharashtra, the last five years were characterized by political instability, with frequent musical chairs at work for the Chief Minister post. This decisive verdict ends the chronic instability in one of India’s most industrialized and economically important states.

Moreover, the BJP’s strong performance (won 132 seats; majority mark 145) will ensure stability in the governance and bring renewed focus on infra development.

Markets have seen a decent correction in the last two months, with the Nifty50 /Nifty Midcap 100/Nifty Smallcap 100 falling ~9% on the back of moderate corporate earnings in H1 FY25, relentless FII selling since October 2024 (~$14 billion), a fragile geopolitical backdrop, and a strengthening dollar index after the victory of Donald Trump in the US election. The anxiety around Maharashtra elections had further muddied the waters.

Preferred Ideas:

Large Caps: M&M, SBI, L&T, Indian Hotels, ABB, Dixon, Bharti Airtel, Trent, Hindalco, Titan, HCLTech;

Midcaps: Angel One, BSE, Amber Enterprises, Ipca Labs, Cummins, Page Industries, Godrej Properties, Coforge, JSW Energy, Gravita.

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