The Indian benchmark indices closed higher due to investor optimism fueled by NDA’s clear lead in Bihar elections, as the Sensex gained over 183 points to end trade at 84,662.01 and the Nifty rose more than 30 points to close trade at 25,910.05.
In the 30-share BSE Sensex, the top gainers included shares such as Eternal, Bharat Electronics, Trent, Axis Bank and State Bank of India. Meanwhile, the laggards included stocks like HCLTech, Mahindra & Mahindra, L&T, Maruti and Ultra Cement.
Previously, during the morning session markets had opened on a weaker note due to weak global market trends as well as jitters ahead of the outcome of Bihar elections got declared.
According to traders, continuous foreign fund outflows have dampened the sentiment for investors.
During early trade Sensex declined 303.63 points, to start trade at 84,175.04 and the Nifty depreciated by 82.65 points to open at 25,796.50.
Market Reaction Expected to Be Short-Lived
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said the market’s immediate focus will be on the Bihar election outcome. However, he noted that any response to the results—regardless of the verdict—is likely to be short-lived. According to him, the medium- and long-term trajectory of the market will continue to depend on underlying fundamentals, particularly earnings growth.
Optimism on Growth and Earnings
Vijayakumar highlighted that prospects of strong GDP growth and improving corporate earnings provide reasons for optimism. He added that India’s market underperformance this year is unlikely to persist.
Nifty Still a Long-Term Outperformer
He emphasised that despite the significant underperformance of the Nifty so far in 2025, it remains the best-performing index among major global markets over the past five years. The strategist pointed out that a dip in corporate earnings in FY25 and elevated valuations have weighed on sentiment this year.
Construct Seen Improving Ahead
Vijayakumar noted that this market setup is expected to improve going forward, as fundamental drivers begin to strengthen.
