Sensex & Nifty Fall Despite NDA’s Strong Bihar Lead as Global Market Selloff Sparks Profit Booking

Indian stock markets slipped on Friday, ending a four-day winning streak, as global uncertainty over the US Federal Reserve’s interest-rate outlook triggered a broad selloff. The correction came even as early trends in the Bihar Election 2025 showed the NDA comfortably crossing the majority mark.

Profit Booking Dominates Despite Political Stability Signals

Market experts noted that investors had already priced in an NDA victory over the past four sessions, during which both Sensex and Nifty surged. With the event largely factored in, traders shifted to profit booking amid negative global cues.

In early trade:

• Sensex fell 436 points to 84,042
• Nifty dropped 113 points to 25,766

Global Selloff Weighs on Indian Markets

Ponmudi R, CEO of Enrich Money, said market sentiment is likely to stay cautious due to the sharp overnight fall in US equities and weak signals from Asian markets.

He explained that mixed statements from US Fed officials over the timing of future rate cuts—combined with persistent inflation concerns—have dampened expectations of monetary easing. This prompted global investors to reduce risk exposure.

How Global Markets Performed

On Thursday in the US:

• S&P 500 closed 1.7% lower
• Nasdaq 100 dropped 2.1%

Asian markets followed the global downtrend on Friday:

• Nikkei plunged 886 points to 50,395
• Hang Seng fell 340 points to 26,733
• KOSPI dropped 112 points
• Taiwan Weighted was down 336 points

Why Indian Markets Reacted Strongly

Even though the NDA’s strong performance in Bihar signals political stability—typically a positive for markets—the global risk-off sentiment overshadowed domestic triggers. With US rate-cut expectations cooling, investors shifted to safer assets, leading to short-term pressure on Indian equities.