At first glance, the share market seems to be unenthused by the Bihar election outcome, even with NDA’s emphatic lead well-above the halfway mark, comfortably beating exit poll projections. Normally, state elections don’t move the equity markets meaningfully.

However, the outcome of Bihar state elections matter because of the NDA’s current composition at the Centre. Unlike previous election cycles, the BJP has reduced strength in the Lok Sabha, and the NDA is dependent on key regional allies such as the JD(U) and the TDP, making the arithmetic of political stability a crucial factor for governance. Any political surprise, especially from Bihar where the JD(U)’s presence is significant, could have raised questions around the cohesiveness within the alliance, experts have said.

Any sign of

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