Sensex and Nifty end slightly higher as NDA’s strong Bihar win lifts investor mood

The Indian benchmark indices ended slightly higher on Friday, with the Sensex closing at 84,562.78 and the Nifty finishing at 25,910.05. Both indices recovered in the final hour of trade after spending most of the day in a narrow range.

"Defying weak global cues, Indian markets surged higher after the ruling National Democratic Alliance secured a decisive majority in the Bihar assembly elections — a result that far exceeded most exit poll predictions," said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.

"The stronger-than-expected mandate reinforced expectations of policy continuity and political stability, significantly boosting investor confidence and driving broad-based buying across sectors. Additionally, the sharp fall in WPI inflation to –1.21%, coming immediately after the steep decline in CPI inflation to 0.25%, has strengthened expectations of a softer policy stance from the RBI," added Ponmudi R.

The Nifty 50 recovered smartly after filling the opening downside gap and delivered a strong pullback, ending the week on an upbeat note, reaffirming bullish sentiment. A sharp late-hour reversal propelled the index above the previous day’s close, with Nifty finishing firmly above the 25,900 mark.  Bank Nifty, on the other hand, closed above the 58,500 mark, signalling a strong rebound from its lower trendline support near 58,100, which aligns with the short-term ascending support zone.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, "Global markets were largely positive, despite a decent correction in AI stocks, broadly driven by the end of the US government shutdown, strong Q3CY25 earnings print in the US, and the supportive outlook of the US Fed, etc. On the macro front, October CPI inflation eased to 0.25% due to a 5% YOY deflation in food and some impact of GST rate cuts across sectors. FPI flows are expected to remain volatile."

The BSE 30 index and the NSE 50 index moved around 1% higher this week. The midcap and the smallcap index, though positive, underperformed the larger peer. On the sectoral front, most sectors ended the week with modest gains, with none recording significant gains or losses.

"BSE IT and BSE Capital Goods indices outperformed, while BSE Realty, BSE FMCG and BSE Commodities underperformed.  Global markets were supported by the end of the US government shutdown, strong US earnings, and the US Fed's supportive outlook. In India, the October CPI inflation eased to 0.25% due to a continued deflation in food and some impact of GST rate cuts across sectors. In Indian markets, stock-specific actions continued based on Q2FY26 results and management commentary," said Chouhan.