Bihar Elections Weigh on Indian Markets Amid Global Sell-off

Indian markets opened lower on Friday as investors remained cautious ahead of Bihar election results, impacting sentiment due to potential political implications. Broader markets showed mixed performance, while global cues added to the downbeat mood. Meanwhile, the Physics Wallah IPO continued to attract investor interest amid market volatility.

India's stock markets opened in the red on Friday as nervous investors awaited the outcome of the Bihar Assembly elections, a political event with significant implications. The results could potentially affect the stability of the national government, leading to cautious trading on the Sensex and Nifty 50 indices.

The Nifty 50 dipped to 25,798.25, a 0.31% decrease, while the BSE Sensex dropped to 84,220.50, reflecting similar sentiment. Market expert Ajay Bagga noted the likelihood of volatility throughout the day, influenced by the election outcome and its political significance.

Bagga indicated that a strong lead by the ruling coalition could drive a positive market response, emphasizing policy continuity. Despite the cautious mood, selective buying in mid- and small-cap stocks provided some balance to the broader market's mixed performance.

Sectors displayed varied trends: Nifty Auto and Nifty IT experienced declines, while Nifty Media and Nifty Pharma remained resilient. Meanwhile, the IPO of edtech platform Physics Wallah saw strong demand, particularly from institutional investors, reflecting focused market interest.

Global factors added to the market's challenges, with US indices falling sharply on Thursday due to concerns over AI valuations and indications from the Federal Reserve regarding future rate cuts. Asian markets mirrored this bearish sentiment following weak Chinese data and US market trends.

(With inputs from agencies.)