Markets did not appreciate the Bihar verdict very well on Monday morning, as the BSE Sensex fell as much as 600 points.
This is over a 2 per cent fall, and analysts point to the Bharatiya Janata Party’s dismal performance in the Bihar Assembly polls, the results of which were declared on Sunday. The markets had been tapering over the last few days, as the exit polls showed an unfavourable result for the Narendra Modi-led BJP.
Meanwhile Nifty slipped below 7,800 in early trade, while BSE Sensex traded below the psychological mark of 26,000 points. A similar impact was seen on the rupee, which fell over 1 per cent to 66.50 per dollar. As of 10:57 am, Sensex was trading below 293.29 below at 25,971.95.
Nifty was trading at 7,860.85 (93.45 points below). However, analysts say that this is temporary and only offers an opportunity for buyers. The results of Bihar polls will not impact the direction of speed of reforms, observers felt.