The recent elections in Maharashtra resulted in the BJP-led Mahayuti alliance winning over 200 seats in the 288-member Assembly. This indicates that the current policies and development agendas will continue.

However, there are concerns about the state's fiscal health due to the ambitious promise of direct cash handouts to around 26 million women. This could impact the already lagging capital expenditure plans.

The slowdown in state capex could have a negative impact on EPC stocks that are heavily focused on Maharashtra. In the first seven months of this financial year, the government awarded projects worth Rs 1.5 lakh crore in various sectors such as roads, railways, and real estate. Key players in this market include L&T, HG Infra, J Kumar Infra, Ashoka Buildcon, and GR Infra, all of which may face challenges if state spending decreases.