Indian shares set to open higher after NDA's victory in Maharashtra
Nov 25 (Reuters) -Indian shares are set to open higher on Monday, after logging their best session since early June on Friday, with analysts expecting ruling alliance's victory in Maharashtra elections to boost investor sentiment.
The Gift Nifty futures GIFc1 were trading at 24,332, as of 08:05 a.m. IST, indicating that the benchmark Nifty 50 .NSEI will open above Friday's close of 23,907.25.
The National Democratic Alliance's (NDA) victory in Maharashtra is likely to lift sentiment, as the decisive win will end the chronic instability in one of the most industrialised and economically important states in the country, said Gautam Duggad, a research analyst at Motilal Oswal.
The NDA won 233 out of the total 288 seats in Maharashtra, while the opposition alliance secured victory in Jharkhand.
India's Nifty and Sensex are down about 9% and 8%, respectively, from the record high levels hit on Sept. 27, as of last close, hurt by moderation in earnings growth and sustained foreign outflows for 38 consecutive sessions.
Markets have seen a decent correction in the last two months, with largecap valuations turning cheaper after the drop and attracting buying interest, two analysts said.
While benchmarks are likely to open higher on Monday, Adani stocks may remain under pressure, after the group's dollar bond prices dropped to a near one-year low as investors cut their exposure to the Indian conglomerate in the wake of bribery and fraud allegations from U.S. authorities.
Adani group has denied the allegations, calling them "baseless".
After losing $27 billion in market value on Thursday, the group companies shed about $1.2 billion on Friday.
Other Asian markets opened higher on the day, ahead of key economic data from China. MKTS/GLOB
STOCKS TO WATCH
** Online food delivery platform Zomato ZOMT.NS is set to replace steel maker JSW Steel JSTL.NS in BSE Sensex as part of periodic reconstitution of indexes from Dec. 23.
** S&P Global Ratings upgrades Bharti Airtel's BRTI.NS outlook to "positive" from state and reaffirms BBB- rating, citing earnings strength.
** Rail Vikas Nigam RAIV.NS receives letter of acceptance from Eastern Railway for a project worth 8.38 billion rupees.
** Rites RITS.NS secures revised order for railway electrification from Northeast frontier Railways worth 5.32 billion rupees.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich
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