The stock market rally extended on May 4, 2026, with the BSE Sensex jumping 750 points, or 0.94%, hovering near the 77,700 mark during the session. The NSE Nifty advanced close to 250 points, or 0.92%, crossing the 24,200 level. Buying interest was most visible in real estate, metal and public sector banking stocks, while IT and media shares faced selling pressure. Market participants appeared encouraged by initial election trends from Assam, Kerala, Tamil Nadu, West Bengal and Puducherry. Investors typically prefer a clear political mandate, which is often seen as a sign of policy stability, as reported by Nation.
The assembly elections of West Bengal, Assam, Tamil Nadu, Kerala and Puducherry will be announced on May 4, 2026. According to reports from Goodreturns, Assam, Kerala and Puducherry election voting took place on April 9, while West Bengal had a two-phase voting on April 23rd and April 29th. Tamil Nadu election was held on April 9. The voter turnout across states showed 92% in West Bengal, followed by 89.87% in Puducherry, 85.38% in Assam, 84.69% in Tamil Nadu and 79.63% in Kerala. As vote counting began, early trends showed a potential lead for the BJP, placing Kolkata-based stocks under the microscope, particularly in the infrastructure, power, and railway sectors.
Positive momentum in Asian markets further lifted sentiment back home, with key indices in Japan, South Korea and Hong Kong trading with gains, lending support to domestic equities. Another factor aiding the rally was a decline in crude oil prices, with Brent crude slipping below the $110 per barrel mark and trading near $107, easing concerns around inflation and input costs. The gains come after a weak closing in the previous session, when on Thursday, April 30, the Sensex had dropped 583 points, or 0.75%, to settle at 76,913, while the Nifty fell 180 points, or 0.74%, ending just below the 24,000 level. In that session, IT stocks saw buying interest, whereas metal and PSU banking stocks were under pressure.
According to Goodreturns data, foreign institutional investors (FIIs) continued to be net sellers in April 2026 with overall outflow of ₹70,135.46 crore from Indian stock market. FIIs have been net sellers since July 2025. However, domestic institutional investors (DIIs) have continued to show strong demand for stocks with inflow of ₹51,063.87 crore in April after pumping in ₹1,42,960.37 crore in March 2026. DIIs have been net buyers in Indian stocks since July 2023. The market is witnessing a persistent tug-of-war between foreign and domestic investors, with FIIs pulling nearly ₹2.4 lakh crore from the market throughout early 2026.
The Nifty enters this period on a somewhat fragile footing, hovering near the critical 24,000 mark. Analysts anticipate a potential swing of 1% to 1.5% in the index as final numbers emerge. Key technical levels to watch include immediate support at the 23,850–23,900 range, while a sustained move above 24,300 could trigger a short-covering rally. Traders are generally advised to avoid chasing the initial morning "noise," as headline-driven volatility often stabilises after the first hour of trade. Despite the domestic political drama, global macroeconomic factors remain the dominant force, with Brent crude prices currently trading near $107 per barrel due to ongoing tensions in West Asia posing a more significant structural risk to the Indian economy than regional election results.
