As always, the market reacted to the exit polls. Analysts say that if the NDA wins a majority in the state, it will have a positive impact on the stability of the central government.

Markets ecstatic with NDA government in exit polls, fears loom large if they fail

Exit Poll on Stock Market: After the two-phase voting for the Bihar Assembly elections concluded on November 11, all eyes are now on the results on November 14. However, the stock market's enthusiasm a day after the exit polls was worth seeing.

The BSE Sensex surged 770 points on Wednesday afternoon, while the NSE Nifty traded above 25,900. This warm market sentiment following the exit polls indicates growing investor confidence.

Why is there excitement in the market?

As always, the market reacted to the exit polls. Analysts say that if the NDA wins a majority in the state, it will have a positive impact on the stability of the central government. Political stability has always been considered a good sign for the stock market, as it boosts investor confidence and accelerates the flow of funds.

If the exit polls prove accurate, Nitish Kumar, who has been Chief Minister since 2005, is expected to return to power. The BJP-JDU coalition government has previously held power for long periods in Bihar, and the market is interpreting this as a sign of political stability.

Fear is haunting the market

However, some market experts fear that if the NDA loses power, it could have a negative impact on market sentiment. "If a regional alliance or a fractured mandate emerges in Bihar, investor uncertainty will increase and the Nifty could see a sharp decline," believe several market analysts.

History shows that whenever a stable government is formed in a country or state, the market responds positively. Investors view political stability as a sign of continuity in economic policies—and this confidence is a key driver of the stock market rally. All eyes are now on November 14th, when the Bihar election results will be announced. If exit polls predict an NDA victory, this market rally could last even longer.