Maharashtra Election 2024: The Sensex rose over 1,000 points while the Nifty crossed 23,750 ahead of Maharashtra election voting. Stocks gained on strong global cues and expectations that the BJP-led ruling coalition has an edge over other parties in the assembly elections thanks to populist measures announced in the run-up to the polls.

Markets will be closed on Wednesday due to state elections. Voting will begin from 7 am in the 288 assembly constituencies of Maharashtra. Trends are mixed and may create some volatility in the market, but the outcome of the election should be the key reason for investing. “If the BJP and its allies come to power, it is positive for the market. If not, it would be a neutral event for the market. The market is unlikely to overreact to the election result,” said Kranthi Bathini, director of equity. Strategy at WealthMills Securities.

The Sensex was trading at 78,339.31, up 1,000 points or 1.29%. The Nifty was trading at 23,750.05, up 296.25 points or 1.26%. Bathini said the mid-cap and small-cap segments certainly do not look attractive, but overall it has always been an equity-specific segment.

According to media reports, Phalodi Satta Bazar expects the BJP to win between 87 and 90 seats. The BJP-led Mahayuti alliance has 144-152 seats – 145 seats are needed to form the government, ZEE reported.

Nomura India noted last week that the embattled political parties are not only fighting their rival coalition parties, but are also looking to reassert their authority among their own coalition partners. He said the BJP-led ruling coalition seemed to have the upper hand after the populist measures were announced.

“Some commentators I have met believe that the growing popularity of freebies at the state level suggests that the BJP’s traditional aversion to them is waning and there is a risk that some measures will be adopted by the central government in the coming years, although this is not. a given and must be monitored,” it says.

Emkay Global in a note earlier on October 30 said the Maharashtra election results will set the tone for the national elections and the impact will not only be regional but the winner from either side will have an edge in national politics and greater confidence until 2029.

“A victory for the BJP-led alliance would signal policy continuity with a focus on infrastructure and investment. A victory for the Congress-led alliance would see a pivot to rural spending and a possible slowdown in some key infra projects. Fiscal discipline would be to watch out for , given the state debt looming over Maharashtra and two decades of financial indiscipline,” it said.

In the event of a hung or close assembly, political realignment could be a potential outcome if there is a hung assembly or if the total number of seats of each alliance is similar, Emkay said earlier.