Mumbai, November 16 (IANS). NDA’s bumper victory in Bihar Assembly elections is a good sign for the stock market and the market can react positively to it. Also, this will increase the stability of the NDA government at the Centre, which is good for the economy. This information was given by the analyst on Sunday.
JM Financial Institutional Securities said in its latest note, “Unlike the previous trend, this time the results have been in line with the exit polls and even better.”
The women-centric cash transfer scheme has played a big role in shaping the election results and has also increased voter turnout and its impact was also seen in the assembly results.
The note further said, “The result of Bihar assembly elections in favor of NDA shows the political appeal of BJP and its allies.”
Indian stock markets ended the week on a strong note as benchmark indices gained as the US government shutdown ended, supported by strong domestic cues such as better-than-expected Q2 results and falling inflation.
According to market watchers, at the end of the week, NDA’s victory in Bihar elections boosted investor confidence.
He further said that NDA’s victory in Bihar elections has boosted political sentiment, which overall strengthened the risk appetite of investors.
After recent weakness, markets bounced back strongly during the week and ultimately closed with gains.
Both the benchmark indices (Sensex and Nifty) registered a gain of more than one and a half percent, with Nifty closing at 25,910.05 and Sensex at 84,562.78.
Investor confidence increased significantly as India’s retail inflation rate declined from 1.44 percent in September to 0.25 percent in October due to cut in GST rates and softening of food prices. Wholesale inflation also declined to -1.21 percent in October due to softening prices of crude oil and non-food items.
–IANS
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