Election Results 2026: Brokerage firm Motilal Oswal Financial Services said the outcome of multiple state elections is likely to be viewed positively by the stock market, citing expectations of stronger policy continuity and renewed political momentum for the ruling NDA. The brokerage highlighted that Prime Minister Narendra Modi remains the biggest pull factor in Indian politics, with “Brand Modi” continuing to shape electoral outcomes across states.
According to MOSL, the BJP’s gains in West Bengal, strong performance in Assam, and the broader election verdict have strengthened confidence in governance continuity, while markets are also expected to track corporate earnings, geopolitical developments in West Asia, and commodity price movements closely.
The BJP won 207 seats in West Bengal on the back of ~8 per cent jump in the vote share to ~46 per cent vs ~38 per cent in 2021. In Tamil Nadu, TVK made a dream debut: Tamil Nadu delivered a very rare verdict with the debutant TVK party winning in 108 seats (vs. total of 234 seats) with a vote share of ~35 per cent.
Assam marked three in a row for BJP: The saffron party won elections for the third time in a row on a pro-performance drive. BJP won 82 seats this time vs 60 seats in 2021, with its vote share rising from 33.6 per cent to 37.8 per cent.
Kerala was the saving grace for Indian National Congress, wherein its alliance UDF is winning or leading in 85 seats (vs 41 in 2021).
Motilal Oswal said that brand Modi continues to be the biggest pull factor in Indian politics.
Clearly, the higher, intellectual strata of the West Bengal society have seemingly undergone a rare change in ‘perspective’ and voted for a right-wing ideology driven by high pull factor and convincing narrative set by the PM, it noted.
Winning in West Bengal further strengthens the credentials of PM Modi as a leader commanding appeal in diverse segments of the Indian electorate, raising his overall popularity, the brokerage added.
Motilal Oswal’s View on Stock Market
Multiple state elections verdict will be viewed positively by the market, not only for the message of a progressive change but more from the lens of policy continuity as the hands of the ruling NDA have become stronger and any faint memories and concerns of 2024 Lok Sabha setback have been convincingly wiped, MOSL added.
“The results have longer-term implications on the economic growth of involved states, especially the momentous transition for West Bengal, which will play out over the years. Once the results are digested and their positive undercurrent well noted, markets will quickly shift focus to the more immediate developments in the West Asia war and the 4QFY26 earnings season,” it added.
“The 4Q results season has been largely in line with our estimates with a positive bias. For the 109 companies reporting to date (forming ~50% of the estimated PAT pool of MOFSL universe), sales have been 1.6% ahead of our estimates, EBITDA has been in line, while PAT has been 2.6% ahead of MOFSL est. Sectorally, beats in Banks, Consumer, Consumer Durables, Healthcare, Metals, and Retail stand out, while Autos, NBFC Non-Lenders, Oil & Gas, and Utilities have posted misses on aggregate PAT level,” the brokerage noted.
However, in the near term, “the market will remain hostage to volatile developments arising from the West Asian crisis, while higher commodity prices will be a key monitorable, as a prolonged elevated level could affect India’s macro parameters and engender a tight monetary policy stance.
Nifty 50 Top Picks
“We continue to prefer Large Caps and Mid Caps in our model portfolio. Our Top Nifty-50 Ideas: Bharti Airtel, SBI, ICICI Bank, M&M, Titan, Bharat Electronics, Eternal, Tata Steel, Infosys, and Interglobe Aviation.”
Top Non-Nifty-50 Ideas: TVS Motors, ICICI PRU AMC, Groww, Indian Hotels, AU Small Finance, Dixon Tech., Lenskart, Waaree Energies, Coforge, Radico Khaitan, and Delhivery,” the brokerage noted.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
