Motilal Oswal Financial Services stated that the NDA’s decisive victory in the Bihar assembly elections is likely to provide a fresh boost to investor sentiment, supporting a sustained uptrend in the Nifty 50. The brokerage highlighted that the NDA’s win of 202 out of 243 seats, with a 46.6 percent vote share, reinforces expectations of policy continuity, stable governance, and a pro-growth political environment—factors that complement an already favourable macroeconomic and corporate earnings backdrop. Ahead of Monday’s market open, Motilal Oswal released the commentary, noting that the Nifty 50 extended its recovery mid-session, trading at 25,966.95, up 56.9 points (0.22 percent).
The brokerage described the Bihar result as part of the “stars aligning” for equities, alongside ongoing government and RBI reforms, GST 2.0-driven consumption, easing interest rates, and stronger corporate earnings momentum. Indian equities have lagged emerging-market peers, with the Nifty down 1 percent since September 2024 versus a 20 percent gain in MSCI EM. Motilal Oswal sees political stability and improving earnings as key factors to narrow this gap. The recent Q2 FY26 earnings season showed a 3 percent profit beat and 2 percent revenue beat overall, with midcaps outperforming.
The Bihar mandate also strengthens the “double-engine government” narrative, signaling policy alignment between the Centre and state, which markets typically view positively. With valuations near 21.1x and a supportive macro setup, the brokerage remains constructive on Indian equities, though it expects investors to shift focus to upcoming macro triggers such as GST-driven consumption, RBI commentary, global cues, and corporate earnings trends.
