(Reuters) -India’s stock benchmarks inched lower at the open on Thursday, after rising 1.5% each in three straight sessions, as investors awaited election results for the politically significant north Indian state of Bihar, which could have ramifications for policy continuity.
The Nifty 50 slipped 0.14% to 25,839.85, while the BSE Sensex shed 0.13% to 84,354.60 as of 9:36 a.m. IST.
On the day, 12 of the 16 major sectors logged losses. The broader small-caps and mid-caps traded flat.
Cooling domestic inflation, the end of the U.S. government shutdown and easing trade worries have aided the market rally so far this week.
That said, domestic equities may only see marginal moves, consolidating near current levels ahead of the Bihar election results on Friday, two analysts said.
Exit polls have shown that the ruling National Democratic Alliance is on track to retain power in the state.
However, any surprise loss for the NDA could trigger a 5%-7% correction in Indian markets as it will impact government stability and predictability in policymaking, said InCred Equities.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Ronojoy Mazumdar)
