JM Financial in a note on Thursday said the exit polls on recently concluded state elections suggested a majority for the BJP-led Maha Yuti alliance in Maharashtra with 150 seats. The picture is less clear in Jharkhand with the NDA at 39 seats and short of the majority by two seats, the domestic brokerage said. The results are scheduled for November 23.
Ahead of the election outcome, benchmark indices took a beating in early Thursday trade amid geopolitical tensions and a selloff in Adani group shares, but saw some recovery as the session progressed.
On Maharashtra elections, JM Financial said exit polls -- based on the average of 9 polling agencies suggested a majority for the incumbent Maha Yuti with a majority of 150 seats. Maha Vikas Aghadi (MVA) is expected to trail at 125 seats, it said.
"After a poor show in the general elections, the Maha Yuti led by the BJP has been on the front foot with its women centric cash transfer (Ladki Bahin scheme of INR 1500/month). Concerns raised on the fiscal impact of this cash transfer (Rs 46,000 crore), were allayed by the BJP," it said.
Although Maharashtra’s fiscal deficit is expected to improve to 2.6 per cent of GSDP in FY25 from 2.8 per cent prior, Maha Yuti’s and MVA’s promises of increased cash transfers in the run up to elections could deteriorate the State’s fiscal situation, it said.
Despite recovery, Sensex was still down 468.68 points, or 0.60 per cent, at 77,109.70. Nifty was trading at 23,344.25, down 174.25 points or 0.74 per cent.
In the case of Jharkhand, JM Financial said the picture is less clear as the elections will go down to the wire.
"The contest in the state is between the ruling JMM-led INDIA Alliance and the BJP-led National Democratic Alliance (NDA). Based on the average of 8 polling agencies NDA is ahead on 39 seats (while 41 seats are required to gain a clear majority)," it said.
Jharkhand Mukti Morcha (JMM) is contesting on 43 seats (unchanged from 2019) while BJP is contesting on 79 seats against 68 in 2019.