Indian Stock Market Rises Amid Election Results

The Indian Stock Market opened positively on Monday, with the Sensex and Nifty both experiencing significant gains following the election results. As investors react to the outcomes from various states, market volatility is expected to remain high. Experts suggest that while the election results may influence short-term sentiment, long-term trends will be dictated by crude oil prices and foreign institutional investor activity. Stay tuned for more updates on market movements and expert analyses.

By Narendra Chaudhary May 4, 2026, 09:48 IST

Market Overview

On Monday, the Indian Stock Market experienced a positive opening, buoyed by the recent election outcomes. The Sensex surged by 616.01 points, marking a 0.80 percent increase, reaching 77,529.51. Meanwhile, the Nifty index rose by 180.95 points, or 0.75 percent, settling at 24,178.50. All sector indices were in the green, with notable gains in Nifty Auto, Nifty Realty, Nifty FMCG, Nifty Metals, and Nifty PSU Banks.

Market volatility is anticipated to remain elevated as investors closely monitor the assembly election results from four states and one Union Territory. Vote counting commenced at 8 AM on Monday (May 4) to determine the next governing bodies following elections in West Bengal, Tamil Nadu, Assam, Kerala, and Puducherry. Voting took place on April 9 in Assam, Kerala, and Puducherry, on April 23 in Tamil Nadu, and in two phases on April 23 and April 29 in West Bengal.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, "The market's performance today may be significantly swayed by the state election results, particularly in West Bengal. However, it is crucial to recognize that this influence will likely be short-lived. The overarching market direction will be determined by crude oil prices, which are influenced by developments in West Asia. President Trump's announcement regarding U.S. assistance for ships in the Strait of Hormuz has led to a decline in Brent crude prices to approximately $108. Additionally, Iran has made a recent proposal to the U.S. via Pakistan."

"Another critical element affecting market dynamics will be the activity of Foreign Institutional Investors (FIIs). The ongoing trend in AI trading suggests that FIIs may continue to divest from Indian markets. This could restrain large-cap stocks while shifting focus towards the broader market. Consequently, any rally prompted by domestic political changes may be leveraged by FIIs to increase their selling. The global AI trading environment is expected to continue impacting markets in the near future."