Dalal Street expects quicker reforms after BJP’s Maharashtra win
Industry captains and market players are upbeat about the change in government at Maharashtra, and expect speedy resolution of stalled projects and improved business prospects for the state.
However any positive impact on the bourses in a festival-shortened week could be temporary, as the markets had already factored in a BJP win based on the outcomes of exit polls, said brokerages.
“It is a big positive for business and the markets as the election results signal certainty and will also give the BJP strength in both Houses, which is vital for passing key legislations,” said Rasesh Shah, chairman of Edelweiss Group and a key interpreter of market trends. “However the markets are today more influenced by global factors, and the ongoing concerns of a slowdown could temper the enthusiasm.”
The BJP’s lack of a majority in Rajya Sabha has been a dampener in key areas including the passage of the Goods and Services Tax (GST), the Land Acquisition Bill and on increasing foreign investment in insurance.
“It would lead to a clean-up of the debris of economic slowdown left by the previous government,” said Ajit Gulabchand, chairman of HCC, which built the iconic Bandra-Worli Sea Link here. “It definitely augurs well for the industry as the Prime Minister has shown he has clarity of vision and the courage to move away from Nehruvian socialism.”
“It should give the BJP power to press ahead with key measures for infrastructure and land reforms,” said a leading banker, who requested anonymity. “Decisions on infrastructure projects, which have been delayed, and on land, which is a major factor for construction, should be speeded up.”
“We are keenly watching the situation,” said Chandrajit Banerjee, director-general, CII. “Having said that, we are enthusiastic of a stable government coming to power in Maharashtra. We are looking forward to business-friendly policies,” he added.
A recent report by Nomura had voiced concerns about the impact a coalition government in Maharashtra will have on reforms. “The best case in these state elections is for the BJP to get an outright majority, which will improve centre-state co-ordination and consolidate the BJP’s position in the Rajya Sabha,” the report said.