Benchmark indices Sensex and Nifty surged on Friday, ahead of state election results on Saturday, with the recovery anchored by index heavyweight Reliance Industries Ltd, banking names such as ICICI Bank and State Bank of India and IT majors Tata Consultancy Services Ltd (TCS) and Infosys.
At 3.02 pm,the BSE Sensex stood at 79,143.55, up 1,987.76 points, or 2.58 per cent. The BSE Nifty soared 567.45 points, or 2.43 per cent, to 23,917.35.
A recovery in several Adani names improved the market sentiment. Stocks also gained as a couple of exit polls and Phalodi Satta Bazar suggested a win for the BJP-led Maha Yuti alliance in Maharashtra. A BJP-led alliance victory would signal policy continuity with emphasis on infrastructure and capex, analysts said. US stock indices had settled about 1 per cent higher overnight that added to the sentiment.
“Market sentiment was buoyed by exit polls from the Maharashtra election, indicating a likely victory for the Maha Yuti alliance. This would mark the BJP-led NDA’s second consecutive state assembly win, following Haryana, which is seen as a positive signal for renewed government-led capital expenditure initiatives,” said Vishnu Kant Upadhyay, AVP – Research and Advisory at Master Capital Services.
RIL, the most-valued stock on Dalal Street, was up 2.62 per cent at Rs 1,255.25. The largest state-run lender SBI jumped 4.11 per cent to Rs 812.85. India’s largest software exporter TCS advanced 3.47 per cent to Rs 4,214.10 while the second largest IT player Infosys rose 3.41 per cent to Rs 1,896.55.
“The market can recover from the present levels since yesterday’s selling was largely due to the fall out of the Adani issue. But considering the headwinds the market is facing, a sustained recovery is unlikely,” said . V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Vijayakumar said the strength in the broader market should not be confused with the fundamental strength, particularly for midcaps, which are rising due to liquidity and not fundamentals. Fundamental strength and safety are in large-caps,” he said.
Exit polls suggested a majority for the Maha Yuti alliance in Maharashtra with 150 seats, JM Financial said adding that the picture was less clear in Jharkhand with the NDA at 39 seats and short of the majority by 2 seats.
“BJP’s loss of absolute majority in the parliamentary elections has not affected the overall policy direction, except for a step-up in welfare spending by states. Adverse outcomes in state elections are unlikely to immediately change this construct. However, the UP assembly elections due in April 2026 is a must-win and there may be a rethink of priorities in the lead-up,” said Emkay Global.
