Are the Sensex and Nifty Rising Due to US-India Trade Talks and Bihar Exit Polls?
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Synopsis
On November 12, the Indian stock market showed positive movement, buoyed by trade deal optimism and promising exit poll results for the NDA in Bihar. This article delves into the market dynamics, sector performances, and investor sentiments shaping today's trading landscape.
Key Takeaways
- Sensex up by 496 points, Nifty rises by 147 points.
- Positive sentiment due to potential India-US trade deal.
- Exit polls predict NDA majority in Bihar.
- Most sectoral indices trading in green.
- FIIs may sell at higher levels amidst market fluctuations.
Mumbai, Nov 12 (NationPress) The Indian benchmark indices commenced the day positively on Wednesday, fueled by reports of a likely India-US trade agreement and exit polls indicating a strong majority for the NDA in Bihar.
As of 9:25 am, the Sensex rose by 496 points, or 0.59 percent, reaching 84,367, while the Nifty increased by 147 points, or 0.58 percent, settling at 25,842.
The broadcap indices mirrored the benchmarks' performance, with the Nifty Midcap 100 rising 0.55 percent and the Nifty Smallcap 100 climbing 0.61 percent.
Among the major gainers in the Nifty pack were Max Healthcare and Tech Mahindra, while Maruti Suzuki and Trent faced losses.
All sectoral indices traded positively, with the exception of Nifty FMCG, which showed a slight negative trend. The Nifty IT and Nifty Oil and Gas sectors stood out, gaining 1.26 percent and 0.95 percent, respectively.
According to market analysts, "With news of a pending India-US trade deal and positive exit poll results for the NDA in Bihar, market sentiment has improved. This will bolster bulls, but it may not be sufficient for a definitive market breakout or sustained rally."
Current trends suggest that FIIs might continue to sell at elevated levels as long as the AI trade persists.
From a fundamental standpoint, optimism is warranted as GDP growth remains strong and earnings growth for FY27 appears promising. Sectors such as financials, consumption, and defense stocks are poised to drive the next phase of the rally.
Most Asia-Pacific markets saw gains in early trading following a mixed performance on Wall Street, amidst hopes that the US government shutdown may soon conclude, despite challenges for AI stocks.
In overnight trading, US markets closed mixed, with the Nasdaq decreasing by 0.3 percent, the S&P 500 rising by 0.18 percent, and the Dow inching up by 1.2 percent.
Within Asia, China’s Shanghai index fell by 0.23 percent, while Shenzhen dropped 1 percent. Japan's Nikkei decreased by 0.21 percent, yet Hong Kong's Hang Seng Index rose by 0.56 percent, and South Korea's Kospi surged by 0.84 percent.
On Monday, foreign institutional investors (FIIs) sold equities amounting to Rs 803 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2,188 crore.
Point of View
I emphasize that while the market shows positive momentum today, it is essential to maintain a balanced view. Investors should remain cautious and informed, given the fluctuating nature of global markets and domestic sentiments. It’s a time for strategic decision-making, keeping a close eye on upcoming developments.
NationPress
12/11/2025
Frequently Asked Questions
What factors are contributing to the rise of Sensex and Nifty?
The rise is primarily attributed to optimistic reports regarding an imminent India-US trade deal and positive exit poll predictions for the NDA in Bihar.
Which sectors are performing well in the market today?
The Nifty IT and Nifty Oil and Gas sectors are leading the gains, while most other sectors are also trending positively.
How did the US markets perform overnight?
The US markets closed mixed, with the Nasdaq down 0.3 percent and the Dow up 1.2 percent, reflecting varied investor sentiments.
What is the outlook for foreign institutional investors (FIIs)?
Current trends suggest that FIIs may continue selling at higher levels, particularly as the AI trade dynamics evolve.
What should investors focus on moving forward?
Investors should keep an eye on GDP growth prospects and sector performances, particularly in financials and defense, for potential rally opportunities.
