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NDA Bihar Win, Cooling Inflation Lift Stocks as Nifty Tests 26,000 Ceiling

Cooling inflation has strengthened the case for an RBI rate cut, bolstering sentiment.

Overview

  • Benchmarks ended the week higher with the Nifty at 25,910 and the Sensex at 84,563 after a rebound supported by strong Q2 earnings and the U.S. shutdown resolution.
  • Technical views flag resistance at 26,000–26,100, with a confirmed break targeting 26,300–26,500, while near-term support is placed around 25,500–25,300.
  • Analysts say the path ahead will be shaped by India PMI readings, U.S. jobless claims, FOMC minutes and progress on IndiaU.S. trade negotiations.
  • Market breadth was mixed as PSU banks outperformed alongside pharma and FMCG, while IT declined; volatility eased with India VIX near 11.94.
  • Gift Nifty signaled a firmer open near 26,012 on Monday, with the NDA’s decisive Bihar victory reinforcing political stability and risk appetite.