Exit Poll on Stock Market: After the voting in two phases of Bihar Assembly elections was completed on 11th November, now all eyes are on the results on 14th November. However, the enthusiasm of the stock market was worth seeing a day after the exit poll.
On Wednesday afternoon, BSE Sensex jumped by 770 points, while NSE Nifty was trading above 25,900. This warmth of the market after the exit polls indicates the increasing confidence of investors.
Why is there excitement in the market?
Like every time, this time also the market’s reaction was seen after the exit poll. Analysts say that if NDA gets majority in the state, it will also have a positive impact on the stability of the Centre. Political stability is always considered a good sign for the stock market, because it increases investor confidence and accelerates money flow.
If the exit poll’s predictions prove correct, then the return of Nitish Kumar, who has been the Chief Minister since 2005 to power, is considered certain. The BJP-JDU coalition government has been in power in Bihar for a long time before, and the market is taking this as a sign of political stability.
Fear is haunting the market
However, some market experts are also afraid that if NDA is out of power, it may have a negative impact on the market mood. If there is a situation of any regional alliance or a divided mandate in Bihar, then uncertainty among investors will increase and a sharp fall in Nifty may be seen,” many market analysts believe.
History is witness to the fact that whenever a stable government is formed in a country or any state, the market reacts positively to it. Investors view political stability as a continuation of economic policies — and this confidence is a major reason for stock market rallies. Now everyone’s eyes are fixed on November 14, when the results of Bihar elections will be declared. If NDA wins as per exit polls, then this market rally may last even longer.
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