Sensex settles 500 pts higher from day's low, Nifty ends above 25,900: Big NDA win in Bihar, other reasons behind sharp market recovery

Stock market today: Sensex, Nifty rise.

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26 Aug, 2025 12:21

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The equity benchmarks staged a sharp recovery on Friday, with the Sensex climbing over 500 points from the day’s low and the Nifty moving above the 25,900 mark as investors turned to value buying at beaten down prices. Sentiments also improved after the National Democratic Alliance (NDA) posted a landslide victory in Bihar.

The Sensex benchmark began the trade on a negative note by declining 449.35 points or 0.53 percent to 84,029.32. The Nifty started the day off lower by 138.35 points or 0.53 percent to 25,740.80.

However, both the benchmark indices showed some recovery at the fag end before closing the session with gains for the fourth day in a row.

The Sensex ended 84.11 points or 0.10 percent higher at 84,562.78, while the Nifty went up 30.90 points or 0.12 percent to settle at 25,910.05.

Adani Enterprises, Oil & Natural Gas Corporation and Adani Ports and Special Economic Zone were the top gainers, rising up to 3 percent, while Infosys and Tata Steel were among major laggards, declining up to 2 percent.

1) Trends favour NDA in Bihar: Counting trends showed the NDA leading in 206 seats, well past the majority mark of 122, till 3:15 pm. The prospects of the alliance retaining power boosted expectations of policy continuity, helping improve market mood after Thursday’s subdued close.

2) Moody’s growth outlook for India: Moody’s Ratings, in a statement, said it expects India’s economy to grow at 6.5 percent through 2027. The agency cited strong infrastructure spending and steady consumption as key drivers, even as it noted that private sector capital expenditure remains cautious.

3) Value buying: After Thursday's afternoon sell-off that led to flat close on benchmark indices, value buying emerged on Friday as markets shrugged off initial jitters over the Bihar poll outcome.

"Market sentiment is clearly constructive, driven by a better-than-expected September-quarter earnings season and optimism over an India–U.S. trade deal after the U.S. President signaled progress earlier this week," Aishvarya Dadheech, founder of Fident Asset Management told Reuters. "A clear NDA win should lift benchmarks to record highs in the near term," added Dadheech.

Anand James, Chief Market Strategist at Geojit Financial Services, said Nifty turned lower after briefly moving above 25,980, confirming the caution highlighted earlier. He said the uptrend towards 26,130–26,550 remains intact as oscillators have yet to indicate a reversal, though the downside marker may shift higher to 25,789.