MOFSL in its latest note said the staggering victory of the ruling BJP-led NDA alliance in Maharashtra should bring the undercurrents back in the markets. The brokerage noted that Maharashtra had seen political instability in the last five years, with frequent musical chairs at work for the Chief Minister (CM) post. Largecap valuations look reasonable and a mini risk-on rally seems likely, it said.
"This decisive verdict ends the chronic instability in one of India’s most industrialised 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," the brokerage said. MOFSL said the magnitude of victory is unprecedented in many sense - a vote share of 50 per cent for the winning alliance -- a huge gap of 15 per cent against opposition’s vote share of 35 per cent, with comprehensive victory across all six regions of Maharashtra.
NDA won 70-87 per cent of seats in all regions, barring Mumbai, where it won 64 per cent of seats. MOFSL noted. "An unprecedented 91 per cent hit rate for the BJP (won 132 out of the 145 seats it contested).
The second-largest party in the NDA is Shiv Sena (Shinde), which won 57 seats, 10 more than the combined tally of the entire opposition alliance. First time in six decades in Maharashtra, an opposition party has failed to secure 10 per cent of seats which is a pre-requisite for appointing a Leader of Opposition .
