The markets are abuzz today, with the Sensex trading cuts gains of 1% or 770 points, whereas the Nifty is also up by almost a percentage point.
This surge comes against the backdrop of several positive cues, including election results in five states across India, a cooling crude as well as a positive momentum in Asian markets.
Here are three reasons the markets are gaining today.
State Election Tailwinds
Market sentiment is primarily driven by early trends from the 2026 Assembly elections. The BJP appears to be heading for a historic sweep in Assam.
In West Bengal, early trends show a significant breakthrough for the BJP, which is currently leading in the majority of seats against the TMC. Investors are rewarding this signal of political continuity and the potential for pro-reform policy stability.
2Global Risk-On Cues
Positive momentum in Asian markets has provided a strong floor for the Indian indices. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6%, while South Korea's KOSPI returned from a holiday with a massive 2.6% jump. These overnight global cues have encouraged domestic bulls to buy on dips.
Cooling Crude Prices
A sharp cooling in crude oil prices has eased inflation fears. Brent crude, which hit a four-year high of $126 recently, has retreated to the $106 range following easing tensions in West Asia and efforts to free up supply routes. Lower oil prices are often a major positive for markets.
"Today's rally is a classic relief move, helped by cooling crude, stronger global risk appetite and early election trends showing the BJP taking a lead in key contests. For markets, the political signal matters because investors typically reward continuity, policy stability and lower uncertainty," said Harshal Dasani, Business Head, INVAsset PMS.
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