Markets Want Government That Supports Development, Fadnavis Will Help Maharashtra Lead: Vijay Kedia

The Indian stock markets are in favour of a government that is stable, emphasises on economic progress, and supports development, ace investor Vijay Kedia said on Wednesday, while commenting on the Bharatiya Janata Party's decision to pick Devendra Fadnavis as the next chief minister of Maharashtra.

"Fadnavis has a clean image, a fine track record and, I believe, he will help Maharashtra take the lead (among other states)," Kedia said, while speaking to NDTV Profit.

Fadnavis, a former two-time Maharashtra chief minister, had served in the top role for a full five-year term stretching from 2014 and 2019. This was followed by his second stint that lasted barely a couple of days.

After serving as the state's Leader of Opposition for nearly two-and-a-half years, Fadnavis was appointed as the deputy chief minister after Shiv Sena's Eknath Shinde rebelled against the then chief minister Uddhav Thackeray in June 2022, and formed a government in coalition with the BJP.

"Fadnavis has shown he is a team player. It is rare to find someone who was the chief minister earlier, and then agrees to become a deputy chief minister. This was a sacrifice," Kedia said.

On Wednesday, the BJP's Maharashtra legislature party elected Fadnavis as their leader unanimously, with all 132 MLA-elects of the party supporting him. This paves the way for his return as the chief minister. The swearing-in ceremony is scheduled in Mumbai's Azad Maidan on Thursday.

Following the announcement, the markets were reacting positively, with the NSE Nifty 50 edging 0.27% higher at 24,522 at 2:00 p.m.

Maharashtra is economically one of India's most crucial states, Kedia pointed out, adding that the kind of verdict delivered in the recently held assembly elections bodes well for the stock markets.

"Markets welcome stability, a strong government, and one with clean track record. They want a government that supports development," Kedia said, as he pointed towards the decisive mandate that the BJP-led Mahayuti coalition won in Maharashtra. The alliance won a total of 230 out of the state's 288 assembly constituencies.

A stable government ensures that big-ticket projects such as the redevelopment of Dharavi and launch of bullet train between Mumbai and Ahmedabad will get catalysed, he added. "A project like Dharavi redevelopment will straightaway benefit our economy."

Kedia, while commenting on the recent slump in the Indian markets, said there was a pressure due to major selling by the foreign institutional investors. But on a positive note, domestic flow of funds did not stop, he added.

He sounded optimistic about the forthcoming period, saying that the market correction has bottomed out. "I think the market is trying to consolidate from here."

Asked about the sectors on his watch, Kedia said infrastructure is one area where India still lags behind. In this backdrop, there will be rapid infrastructure projects in coming years, and "these (infrastructure) companies should gain at the markets". Electric vehicles is one of the themes that market participants will monitor, he added.

Kedia, during the conversation, also shared his view on the recent indictment by the US Department of Justice against Adani Group officials. He suggested that "some are trying to pull back" the Indian conglomerate since it is advancing rapidly.

The analyst recalled that the group was dragged in a similar controversy last year, when allegations were levelled by the US-based short-seller Hindenburg Research. But the Adani Group emerged stronger from the row, he said. "The one who learns to deal with these challenges is the one who progresses the most."

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