How will the markets read into the state election outcome in 2023?

While markets eye both economic and political issues, in the medium-to-long term, analysts believe election results do not matter much

The outcome of state elections – Tripura, Meghalaya and Nagaland – will be a non-event for the markets and can, at best, trigger a knee-jerk reaction, said analysts. While political pundits believe that the outcome of these state elections – and the ones scheduled to be held later in 2023 – will pave the way for the general elections scheduled to be held in calendar year 2024 (CY24), market experts are more concerned on the global cues and macro-economic data – inflation, gross domestic product (GDP) growth, monetary policy trajectory – back home, which they believe will decide how the