Markets open higher; Bank Nifty hits record high as fundamentals outweigh Bihar outcome

Indian equities opened the week on a firm footing on Monday, with both the Sensex and Nifty edging higher, supported by strength in banking counters and buoyant broader sentiment. While the NDA’s victory in the Bihar assembly elections 2025 added to the positive mood, analysts noted that the market’s reaction remained measured, reflecting the limited nationwide economic impact of a state-level outcome.

The Sensex rose 196 points, or 0.23 per cent, to 84,759 in early trade. The Nifty also advanced, climbing 53 points, or 0.21 per cent, to 25,963.

Market analysts said the indices were primarily responding to improving earnings momentum and sector-specific strength rather than political developments in Bihar. “The market is acknowledging the NDA’s win, but state elections typically do not alter the macroeconomic landscape. Investors are focused more on corporate performance and broader policy continuity at the Centre,” a strategist said.

On the charts, Nifty’s bounce above 25,900 has reinforced a sideways-to-positive trend. Experts noted that support lies at 25,800 and 25,700, encouraging accumulation on dips. Resistance levels stand at 26,000 and 26,100, with a decisive move above 26,100 likely to pave the way towards 26,250–26,400 in the coming sessions.

Early movers in the Sensex pack included Kotak Bank, L&T, Titan, M&M, SBI, Tech Mahindra and ITC, each gaining up to 1 per cent. Meanwhile, Tata Motors PV slumped 6 per cent, emerging as the biggest laggard, followed by declines in Eternal, Ultratech Cement, TCS, Power Grid and Infosys.

Broader market indices also reflected optimism, with the Nifty MidCap rising 0.45 per cent and the Nifty SmallCap climbing 0.48 per cent.

The banking space led the rally. The Bank Nifty scaled a fresh lifetime high of 58,830 after a 0.5 per cent rise, while the Nifty PSU Bank index advanced 1.2 per cent. Private banking and FMCG stocks also supported the uptrend, gaining 0.5 per cent each. The Nifty Financial Services index inched up 0.4 per cent.

Analysts attributed the firm start to improving corporate earnings and resilient consumption trends rather than political sentiment. “Q2 results so far show net profit growth of 10.8 per cent, the strongest in six quarters. This is better than estimates, and early indicators suggest further improvement in Q3,” market watchers said.

They added that while elections can give a short-term psychological boost, markets tend to look beyond state-level political shifts unless they influence national policy direction.

With IANS inputs