New Delhi. Voting for Maharashtra Assembly Elections 2024 has been completed. This election presents a picture of a close contest between the BJP-led Mahayuti alliance and the Maha Vikas Aghadi (MVA). The election results will not only affect the politics of the state but are also likely to impact the stock market and economic policies of the country.

Analysts believe that major political events like the Maharashtra elections could bring short-term volatility to the market. Major indexes like the BSE Sensex and NSE Nifty are already down 9.76% and 10.50% respectively from their highest levels. Volatility is expected in the market after the election results.

Experts' opinion
Vinod Nair, Research Head, Geojit Financial Services, said that investors are booking profits before the elections. However, he also said that the recent decline in the market is unlikely to lead to a further decline in prices. The recovery of the market will mainly depend on government spending and corporate earnings in the second half.

Maharashtra's economic contribution and investors' focus
Maharashtra contributes significantly to the country's GDP. In this context, Vishnukant Upadhyay, AVP of Master Capital Services, said that state elections can be an indication of the mood of national politics. However, market performance does not depend only on state elections. Global economic conditions, investor sentiment, and corporate profits also play an important role.

Election results and possible policy changes
BJP alliance wins: Infrastructure push, capex hike, and likely policy continuity.
Opposition wins: Rural spending may rise and some key infrastructure projects may slow down.
Other scenarios: If there is no clear majority, there could be a possible political realignment.

Expectations of economic recovery
Analysts believe that profit booking is being seen in the market before the election results, but the role of government and state-level spending in H2 will be important to keep the market stable. Also, MK Global says that the results of these elections can be important in deciding the direction of the 2029 general elections.

Message for investors:
The result of the Maharashtra elections may bring short-term volatility, but it should not be made the main basis for investment decisions. It will be more important for investors to keep an eye on national and international economic indicators.