Sensex Up 700 Points, Nifty Reclaims 25,900 Amid Bihar Poll Optimism

The Indian stock market witnessed a strong rally on Wednesday, with Sensex soaring over 700 points and Nifty reclaiming the 25,900 mark, as investors cheered exit polls projecting an NDA win in Bihar. Broader buying, supported by firm global cues and improving sentiment, lifted key indices nearly 1%.

At around 12:45 p.m., the Sensex climbed 727.31 points, or 0.87%, to 84,598.63, while the Nifty rose 221.65 points to 25,916.60. Market breadth remained positive, with 2,309 stocks advancing and 1,396 declining on the BSE.

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Adani, ETERNAL Lead Gains; JSW Steel, Shriram Finance Lag

Among Nifty50 stocks, Adani Enterprises, Adani Ports, and ETERNAL gained up to 6%, leading the rally. On the flip side, Shriram Finance and JSW Steel were among the laggards, shedding up to 1%.

Key Drivers Behind the Market Rally

1. India-US Trade Deal Hopes

Investor confidence strengthened after US President Donald Trump hinted that a trade agreement with India is nearing completion, saying, “We’re getting close.” The comment boosted optimism over stronger bilateral ties and trade prospects.

2. Bihar Exit Polls Indicate NDA Victory

Exit polls predicting a comfortable NDA win in Bihar added to the market’s positive momentum. Analysts noted that expectations of political stability and policy continuity lifted investor mood.

“Sentiments have turned for the better with exit polls indicating an NDA victory and progress on the US-India trade deal,” said VK Vijayakumar of Geojit Investments.

3. End to US Government Shutdown

Global sentiment improved after the US Senate approved a deal to end the longest government shutdown in history, reducing uncertainty and lifting global risk appetite.

4. Supportive Global Cues

Asian markets traded mixed, while US markets closed higher overnight. These global gains further supported domestic equities.

5. Crude Oil Price Decline

Brent crude fell 0.23% to USD 65.01 per barrel, providing relief to Indian markets as lower oil prices ease inflation and fiscal pressures.

6. Buying in IT Stocks

The Nifty IT index jumped nearly 2%, with all its constituents in the green. Investors turned to defensive sectors amid global tailwinds.

7. India VIX Drops

The India VIX fell 5.32% to 11.82, showing reduced volatility and improved investor confidence.

Technical View

According to Anand James, Chief Market Strategist at Geojit Financial Services, the Nifty remains on track for the 25,850–25,980 range. However, resistance near 25,726 could limit further upside, with support levels placed at 25,200 and 25,088.

“The rebound above 25,650 has strengthened the bullish trend, though short-term resistance may emerge around 25,726,” James noted.

Market Outlook

Experts believe the rally is driven by political stability hopes, easing global concerns, and positive trade sentiment. While the bulls remain in control, analysts caution that sustained momentum will depend on post-election developments and progress in trade negotiations.

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