Benchmark indices started the day positively on Wednesday, with the BSE Sensex surging more than 400 points and the Nifty 50 crossing the 25,800 mark. Investor optimism was fueled by two significant factors.
Exit polls are indicating a clear victory for the National Democratic Alliance (NDA) in Bihar and the potential for a trade agreement with the United States in the near future.
Dr. VK Vijayakumar, Geojit Investments’ Chief Investment Strategist, expressed that market sentiment has improved with reports of an imminent India-US trade pact and the exit poll forecasts favoring NDA in Bihar.
While these developments are encouraging, Vijayakumar highlighted the need for sustained momentum beyond these events. He cautioned that foreign institutional investors (FIIs) might resume selling if valuations become excessively high, particularly if there is limited participation beyond current AI-driven trading trends.
Both analysts emphasized the strong GDP growth and positive earnings outlook for FY27, particularly in the financial, consumer goods, and defense sectors.
Leading gainers on the Nifty50 included ONGC, Eternal, Bajaj Finserv, TCS, and Tech Mahindra, while top losers were JSW Steel, BEL, Shriram Finance, Asian Paints, and Bajaj Auto.
Anand James, Geojit’s Chief Market Strategist, noted that technically, the Nifty is poised to reach the 25,850–25,980 target range after breaking above 25,650. However, he cautioned about potential short-term volatility, indicating that a failure to sustain above 25,726 or a drop below 25,630 could hinder upward momentum, with stronger support levels at 25,200 and 25,088.
As the market digests these positive signals, traders and investors will closely monitor FII activities, corporate earnings releases, and key economic indicators before making new investment decisions.