Indian Shares Set to Open Higher Following NDA's Maharashtra Election Victory

Indian stock markets are poised to open higher on Monday, buoyed by optimism after the ruling National Democratic Alliance's (NDA) decisive victory in the Maharashtra elections. This follows the market’s best performance since early June in the previous session.

The Gift Nifty futures were trading at 24,332 as of 08:05 a.m. IST, suggesting the benchmark Nifty 50 would surpass Friday's closing level of 23,907.25.

Positive Sentiment from Maharashtra Election Results

The NDA's win, securing 233 out of 288 seats in Maharashtra, is expected to end political uncertainty in one of India’s most industrialized and economically crucial states. "The victory is likely to boost investor sentiment significantly," noted Gautam Duggad, a research analyst at Motilal Oswal.

Meanwhile, the opposition alliance registered a win in Jharkhand, but Maharashtra's result holds greater weight in influencing market dynamics.

Recent Market Performance

As of Friday, the Nifty and Sensex indices were down about 9% and 8%, respectively, from their record highs on September 27. This decline was driven by moderating earnings growth and persistent foreign outflows, which have continued for 38 consecutive sessions.

However, analysts believe the recent correction in large-cap stocks has made valuations more attractive, sparking renewed buying interest.

Adani Group Under Pressure

Despite an anticipated positive opening, Adani Group stocks could face challenges. The conglomerate’s dollar bond prices have plunged to near one-year lows amid bribery and fraud allegations by U.S. authorities. The group has denied these allegations, calling them "baseless." Following a $27 billion loss in market value on Thursday, the group's stocks shed an additional $1.2 billion on Friday.

Broader Asian Markets and Economic Data

Asian markets opened higher on Monday, with investors awaiting key economic data from China, which could further influence global sentiment.

Stocks to Watch

• Zomato: The online food delivery giant will replace JSW Steel in the BSE Sensex as part of the periodic index reconstitution, effective December 23.
• Bharti Airtel: S&P Global Ratings upgraded the company’s outlook to "positive" from "stable" and reaffirmed its BBB- rating, citing strong earnings.
• Rail Vikas Nigam: Received a letter of acceptance from Eastern Railway for a project worth ₹8.38 billion.
• Rites: Secured a revised order worth ₹5.32 billion for railway electrification from Northeast Frontier Railways.

With the political clarity from Maharashtra and improving market valuations, Monday’s session could mark the beginning of a recovery phase for Indian equities.