Market Surge as Exit Polls Fuel Investor Optimism in Bihar

The domestic stock markets opened strong driven by exit polls predicting a Bihar win for the ruling coalition, boosting investor confidence. Nifty 50 and BSE Sensex showed significant gains. Global factors, including expected Fed rate cuts and U.S.-India trade talks, also bolstered market sentiment, anticipating continued momentum.

The domestic stock markets experienced a robust opening, with a more than 0.5 percent gain, as exit polls suggested a decisive victory for the governing coalition in Bihar. This scenario has bolstered investor confidence, showcasing ongoing trust in the political stability at the Centre due to the coalition's governance.

The Nifty 50 index commenced trading at 25,834.30, marking an increase of 139.35 points or 0.54 percent. Likewise, the BSE Sensex began at 84,238.86, escalating by 367.54 points or 0.44 percent. Ajay Bagga, a banking and market expert, remarked to ANI that while exit polls have sometimes been misleading, the markets are currently enjoying a relief rally based on recent trends. As Bihar's election results could impact the NDA coalition's strength, markets are optimistic about a ruling coalition victory there.

In sectoral performance on the NSE, all indices except FMCG were in positive terrain. Nifty IT led the rally with gains surpassing 1 percent, while Nifty PSU Bank climbed 0.77 percent. Meanwhile, Nifty Pharma increased by 0.3 percent and Nifty Auto by 0.2 percent, indicating widespread buying throughout most segments. Groww, set to debut today, witnessed substantial IPO subscription, further buoyed by positive global developments like anticipated U.S. legislative agreements and Fed rate cuts, sustaining the upbeat mood in markets.

(With inputs from agencies.)