Indian equity benchmarks ended lower on October 24, dragged by losses in shares of bank and auto heavyweights.

Investor sentiment was roiled by trends of Maharashtra and Haryana assembly poll results. The ruling BJP was on course to win Maharashtra but Haryana was increasingly looking like a hung house.

“It’s not landslide victory for BJP, as expected. This would certainly impact the stock market in the short-term,” said Shrikant Chouhan, SVP-Technical Research, Kotak Securities.

In the long run, the market would look at or would remain excited about steps towards reforms, such as addressing corporate issues and supporting PSUs like the railways, BSNL and MTNL, Chouhan said.

“The market always gives more weight to the reform process and how the government tackles major issues. Reforms would bring confidence to the market. On this ground, the government seems committed. Those who have missed the boat may come to invest in declines,” he said.

Sameer Kalra, Founder, Target Investing, is also of the view that the BJP’s performance in Maharashtra and Haryana disappointed the market.

“There is mild profit-taking because of BJP’s not-so-impressive show in the assembly polls. However, it is a short-term impact,” he Kalra.

Gaurav Dua, Head, Capital Market Strategy, Sharekhan, said there was some impact on the sentiment of investors but it will be short-lived.

“BJP’s assembly poll performance will weigh on sentiment for the short-term. The earnings and reforms will remain the major trigger. Earnings, so far, have been mixed and it will have a stock-specific impact,” Dua said.

However, some market experts said the assembly outcomes were not a significant trigger.

“I don’t think the assembly election results have a bearing on the market. In fact, I see it better as it may push the government to work harder and push reforms more aggressively,” said Pankaj Pandey, Head of Research, ICICI Securities.