Markets on Monday: Sensex, Nifty Set To Open Higher On Mahayuti's Maharashtra Win? Factors

Indian shares are expected to open higher on Monday, following a strong performance on Friday, their best session since early June. Analysts predict that the victory of the National Democratic Alliance (NDA) in Maharashtra’s elections will boost investor sentiment and provide a much-needed lift to the market.

Gift Nifty futures (GIFc1) were trading at 24,332 at 08:05 a.m. IST, indicating that the Nifty 50 will open above Friday’s close of 23,907.25.

NDA’s Victory in Maharashtra Expected to End Instability

The NDA's decisive win in Maharashtra, securing 233 out of 288 seats, is expected to reduce the long-standing political instability in one of India’s most industrialised and economically crucial states. Gautam Duggad, a research analyst at Motilal Oswal, stated that this victory would likely have a positive impact on investor confidence.

In contrast, the opposition alliance secured a win in Jharkhand, but the overall sentiment remains bullish with the NDA’s dominance in Maharashtra.

Market Correction May Create Buying Opportunities

Despite the optimism from the election results, India’s Nifty and Sensex remain down about 9 per cent and 8 per cent respectively from their all-time highs in September. This decline, driven by moderated earnings growth and foreign outflows, has led to a correction in the market over the last two months. However, large-cap stocks have become more attractively valued, sparking buying interest.

Adani Stocks Face Ongoing Pressure

Adani stocks are expected to face continued pressure, with the group's dollar bond prices falling to their lowest levels in nearly a year. This follows recent bribery and fraud allegations from U.S. authorities. While the Adani Group has denied the allegations, the group saw its market value drop by $27 billion on Thursday and a further $1.2 billion on Friday.

Key Stocks to Watch

Zomato : Online food delivery platform Zomato will replace JSW Steel (JSTL.NS) in the BSE Sensex as part of the periodic index reconstitution, effective December 23.

Bharti Airtel: S&P Global Ratings has upgraded Bharti Airtel’s outlook to “positive” from “stable,” citing strong earnings.

Rail Vikas Nigam: The company has received a letter of acceptance from Eastern Railway for a project worth 8.38 billion rupees.

Rites: Secured a revised order for railway electrification worth 5.32 billion rupees from Northeast Frontier Railways.