The Sensex surged 376 points to close at 83,550, while the broader Nifty jumped 70 points to settle at 25,600 levels. The upswing marks a significant reversal from Tuesday’s slump, illustrating the market's acute sensitivity to both domestic political undercurrents and international cues.
Market Breadth and Sectoral Performance
The market rally was broad-based, with 23 of the 30 Sensex constituents ending in the green. Buying interest was particularly pronounced in FMCG, Auto, and IT stocks, which posted significant gains. In contrast, metal stocks remained under pressure, trading in negative territory throughout the session.
This sharp rebound provides reliable news updates to investors who had been spooked by recent volatility, underscoring the fragile equilibrium between domestic policy stability and global financial flows.
The Bihar Political Calculus
Analysts point to the Bihar elections as a central factor in Thursday's trade. The phased polling for the state assembly is being closely monitored by institutional investors and traders alike, as the outcome is seen as a critical barometer of public support for the incumbent central government and its economic policies.
"A stable political mandate at the centre is paramount for continued policy momentum, especially concerning economic reforms and infrastructure spending," said a senior analyst with a Mumbai-based brokerage.
"The markets are pricing in a favorable outcome in Bihar, which would reinforce the government's reform agenda and attract long-term capital. This is a major trending news story in financial circles."
The government's reliance on coalition partners adds a layer of significance to state-level electoral performances, making the Bihar verdict a key piece in the puzzle of Indian politics and economy .
Global Tailwinds Provide Support
Positive cues from international markets provided a firm foundation for the domestic upmove. In Asia, Japan's Nikkei climbed 1.11%, South Korea's KOSPI gained 1.32%, and Hong Kong's Hang Seng advanced 1.63%.
Overnight on Wall Street, the Dow Jones, Nasdaq, and S&P 500 all closed higher, easing some concerns over global economic growth.
This synchronized global upswing helped offset lingering worries over foreign capital outflow. Data showed Foreign Institutional Investors (FIIs) were net sellers to the tune of Rs.1,067 crore on November 4, continuing a patchy trend.
However, this was counterbalanced by Domestic Institutional Investors (DIIs), who were net buyers of Rs.1,202 crore, demonstrating resilient local confidence.
Looking Ahead
The market's attention now shifts to the final phases of the Bihar polls and the subsequent result declaration. Any political surprise could trigger fresh volatility.
For now, however, the bulls have regained control, with traders hoping that this rally, backed by government policy news stability and a benign global environment, marks the beginning of a more sustained upward trend rather than a temporary bounce.
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