After the Bihar Assembly Elections, exit polls are hinting at the return of NDA alliance to the power, led by BJP and NDA. But select analysts believe that if these polls turn false on November 14, the counting, Indian stock market may witness a sharp correction in the short-term. Markets may price a short-term 'coalition discount,' with Nifty correcting 5-7 per cent on news of NDA’s downfall before stabilising on fiscal policy clarity. Advertisement

InCred Equities has analysed the potential impact on Indian equity markets should the NDA lose the Bihar elections, with further implications stretching to a possible INDI alliance coalition government at the Centre. Drawing on recent history, it is noted that "when dominant-party stability gives way to coalition ambiguity—as in the 2024 pos

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