Mumbai (Maharashtra) [India], November 12 : The domestic stock markets opened on a strong note today, gaining over 0.5 per cent, as exit polls indicated a comfortable majority for the ruling coalition in Bihar.
The exit poll results boosted investor sentiment, reflecting continued confidence in political stability at the Centre due to the coalition government.
The Nifty 50 index opened at 25,834.30, up 139.35 points or 0.54 per cent, while the BSE Sensex opened at 84,238.86, gaining 367.54 points or 0.44 per cent.
Ajay Bagga, Banking and Market Expert, told ANI, "Though exit polls have proved to be error-prone in the past, the markets are in the midst of a relief surge on the back of this. With partner JDU holding 12 MPs in the central NDA coalition of 293, the Bihar election outcome was important for the continued strength of the federal governing coalition. On November 14th, as the results come in, that risk will recede. Markets are pointing to a gap up on the back of that based on present trends. Betting markets, which are fairly accurate, are also projecting a ruling coalition win in Bihar."
In the sectoral indices on NSE, except the FMCG sector, all other sectoral indices were in the green. Nifty IT led the rally with a surge of more than 1 per cent, while Nifty PSU Bank gained 0.77 per cent.
Nifty Pharma was up by 0.3 per cent, and Nifty Auto rose 0.2 per cent, indicating broad-based buying across most segments.
In the primary market, Groww is set to make its stock market debut today at an issue price of Rs 100 per share. The Rs 6,632 crore IPO was subscribed 17.6 times on its third and final day. The issue saw strong participation, led by institutional investors (14.2 times), retail investors (9.4 times), and Qualified Institutional Buyers (22.02 times).
In the global markets, sentiment was lifted by key developments in the U.S. The U.S. Senate passed a compromise reopening bill on Tuesday, and the House is expected to pass it today. Once President Trump signs the bill late Wednesday, a major overhang on market sentiment will be postponed to January.
Adding to optimism, expectations of a Federal Reserve rate cut in December and President Trump's talk of an imminent U.S.-India trade deal have further boosted global market mood.
Vikram Kasat, Head of Advisory at PL Capital, said, "About-Face yesterday Dow Jones was the star of a broad stock market rally that came with a few notable exceptions. Only four stocks in the Dow closed lower: Nvidia, Cisco Systems, Caterpillar, and JPMorgan Chase. For the S&P 500, a majority of stocks finished the day higher, but tech and AI stocks were hit hard. Yesterday was one of the biggest rotations out of winners and into laggards we have seen in months. Nifty closed above the 40-hour average and crossed the 20DMA we will keep the support same at 25,555 on a daily closing basis."
With both domestic political stability and global developments supporting market sentiment, analysts expect continued momentum in Indian equities in the coming sessions.
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