With trends showing Bhartiya Janata Party taking lead in four out of five assembly poll results, the market has welcomed this verdict as both the benchmark indices Sensex and Nifty50 jumped nearly 2.5 per cent. Experts see Uttar Pradesh results setting a precedent for general elections in 2024. 

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Sectorally, Auto, FMCG, Banking and Financial Services lifted the overall market, while Metals are trading little mute during Thursday’s session. The impact of Assembly election results and initial stage of settlement of Russia-Ukraine crisis are the two triggers market is raging on, experts say. 

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We have collated views from different experts Assembly elections results impact on markets 

Expert: Dr. Ravi Singh, Vice President & Head of Research, Share India Securities 

Domestic markets have already responded to the outcome of the state elections, far in advance of the official results. The BJP-led Yogi administration is on the verge of gaining a clear majority in one of the most politically crucial states in India, Uttar Pradesh, and other states. 

However, the market's resurgence is attributed not just to state elections, but also to good developments in the Russia-Ukraine situation.  

The election effect appears to be transient, but if the Ukraine crisis continues to improve, we may witness a market reversal. The Nifty must remain above 16800 for a few days to indicate a definite trend reversal. 

Expert: Sudhanshu Singh - Director IBBM (MoneyMakers India Securities) 

The probability of the BJP forming a government in 3–4 states out of 5 is high, and the BJP will form a stable government again in the upcoming center elections in 2024, confirming to investors that the reforms initiated by the BJP and policies implemented by the current government will continue.  

The market is taking this on a positive note and has shown a positive recovery. Besides, it should not consider the markets to be very bullish; rather, consider them steady.  

Maintaining a strict stop loss of closure below 15000 in the Nifty as a support, investors should hold onto their current positions. Investors should refrain from taking new positions. Sectors that should be focused on the future should be Electric Vehicles, aviation, and food and water resources. 

Expert: Ravi Singhal, Vice Chairman at GCL Securities 

The results are in accordance with market expectations, and the price has already been lowered, so there will be no additional market effect from this point forward. 

Expert: Nitin Rao - CEO, InCred Wealth 

Many of the States are showing their overwhelming acceptance to work done by the ruling party which is a good omen for investors going into the medium term as markets will discount continuity past general elections.  

An interesting sub-trend is also the emergence of a new creditable alternative to the existing parties on the National Stage with pro-populist policies around management efficiency. Both philosophies will lead to development focus as also efficiency in our governance methods, a good long-term indicator for Investments in India.