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Indian Stocks Edge Higher As NDA Bihar Win, Soft Inflation Set Up Test of 26,000

Analysts flag PMI readings, FOMC minutes, foreign flows as the next drivers.

Overview

  • Sensex and Nifty finished last week at 84,563 and 25,910, respectively, after a late rebound tied to improved sentiment and easing inflation.
  • Early Monday trading was flat to slightly positive after Gift Nifty signaled a firmer start, with Nifty hovering near 25,900 and Sensex above 84,600.
  • The NDA’s decisive Bihar victory boosted risk appetite by reinforcing political stability at the Centre, according to market watchers.
  • October inflation cooled sharply to 0.25% on the retail gauge and turned negative on wholesale prices at -1.21%, bolstering rate‑cut hopes; sector moves were mixed with PSU banks outperforming and IT lagging.
  • Near‑term focus is on India’s PMI, the Fed’s meeting minutes, US data and progress on a potential US–India trade deal, while technicians watch for a sustained break above 25,950–26,000 that could open 26,200–26,500, with FII flows seen as a key swing factor.