Market stabilisation expected post-election win

Following the results of the Maharashtra and Jharkhand assembly elections, as well as by-elections in various states, it is expected that the stock market will become stable. After the massive victory of the BJP alliance in Maharashtra, it can be assumed that the volatility in the country’s stock markets will subside, and Indian stock markets may celebrate this win on Monday.

Market analysts were primarily focused on the Maharashtra election results, due to the significant economic activities in the state. Now that the situation is clearer, it is expected that Maharashtra’s economic activities will pick up pace, which will likely have a positive impact on the country’s economy. Additionally, the recent recovery in Adani Group shares, following legal challenges in the US, could also signal a turning point. The recovery in Friday’s stock market might have been driven by “oversold” positions, as technical charts had indicated market weakness, but the election results could shift this equation.

Investors are advised to focus on companies with strong fundamentals. However, foreign institutional investors (FIIs) are still showing a negative outlook.

Investors who typically invest via IPOs will have opportunities to apply for new IPOs this week, including one from Rajputana Bio-Diesel Limited, based in Jaipur. The company plans to raise Rs 24.70 crore by offering shares in the price range of Rs 123 to Rs 130. While the company showed a modest profit of Rs 4.5 crore in FY 2023-24, the risks involved in investing in the company remain a concern. Another Jaipurbased company, Agarwal Toughened Glass India Limited, is also launching an IPO through the MSME platform, raising Rs 62.64 crore by offering shares at Rs 105 to Rs 108. Despite showing improved profits, the company remains under significant debt, raising questions about the high premium being sought for its shares.

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL