Election results 2026: What West Bengal, Assam outcomes mean for stock markets; experts weigh in

Experts believe the results are positive for market sentiment, with expectations of increased investments in West Bengal and continued infrastructure and development momentum in Assam.

In Assam, Chief Minister Himanta Biswa Sarma, marks his return for a third term as the BJP-led NDA alliance secured a majority in the assembly election results. In West Bengal, the BJP overthrew the All India Trinamool Congress (TMC) government with a majority of votes, forming the first central party state government in over 50 years.

The official Election Commission of India (ECI) data showed that the BJP secured 82 seats in Assam, while the contender Indian National Congress (INC) was able to bag only 19 seats in the 2026 election results.

ECI data also showed that the BJP bagged a majority of a whopping 206 seats in West Bengal, while TMC was only able to secure 80 seats in the assembly elections 2026. After the Indian National Congress post-independence, the BJP will become the second central party to enter the state.

Will the election results be positive for markets?

Experts predict that the Assembly election results in Assam and West Bengal are expected to be marginally positive for the stock market investors, and the effects of the same will have a longer-term impact on the infrastructural growth of the eastern regions.

“These are positive developments, no doubt, but we should remember that in the last couple of days, it was expected that the BJP would possibly win in Bengal and come back with a majority in Assam, so it was in line with market expectations,” said Mumbai-based independent stock market analyst Ambareesh Baliga.

Baliga explained how, over the past couple of days, there has been a decent amount of buying in the market as investors were also booking profits based on the dynamic news developments in the states.

“Even though the markets did not hold on to the higher level on Monday, it ended on a positive note,” said the analyst. “In the past four to five weeks, the midcaps and smallcaps have performed well, so most of the individual portfolios that were in the red have improved considerably, in turn improving the sentiment among the domestic investors.”

Key things in focus for investors

Mumbai-based capital markets analyst Ajay Bodke said that the BJP’s historic win in West Bengal is expected to boost the sentiment in the party, as investors now eye infrastructural developments in the region with the regime change.

“The results have broadly been in line with what the markets had largely discounted,” said Ajay Bodke. “BJP’s win in Bengal is expected to energise the party, as the founding father of the Bharatiya Jana Sangh was Dr Syama Prasad Mookerjee, and we should also not forget that West Bengal is the fourth most populous state in the country,” Bodke said.

The expert also highlighted that the BJP’s win in the East comes in line with Prime Minister Narendra Modi’s vision, with key infrastructure developments in focus in the upcoming period, which were lacking historically.

Bodke emphasised that the stock market investors will keep their focus on whether the BJP government can revive the lack of industrialisation of the last few decades in Bengal under the communist and TMC regimes.

In case of the Kerala election results, the expert explained that the “change in guard in Kerala was expected due to the anti-incumbency against the Left Democratic Front (LDF), which was building up in the state."

In the case of Assam, the expert explained that a returning BJP government was expected thanks to the rapid progress under CM Himanta Biswa Sarma of the BJP, with the state successfully clocking the highest GDP growth in the country, along with massive infrastructure buildup, over the years.

Baliga also said that the new government in West Bengal is expected to allocate more funds, announce new projects, and ensure that earlier projects are completed, but the execution of the same will remain in focus.

“They will possibly announce new projects and ensure earlier projects are completed, as whatever is said and done now, they need to prove themselves,” said the market analyst.

Stock market on May 4

The Indian stock market indices, NIFTY50 and BSE SENSEX, closed with gains on Monday, May 4, after the election result trends turned the market sentiment positive, as the Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) bagged a landslide victory in the Bengal and Assam elections.

The NIFTY50 index closed 0.51% higher at 24,119.30 points on Monday, compared to 23,997.55 points at the previous stock market close, according to NSE data. The BSE SENSEX closed 0.46% higher at 77,269.40 points, compared to 76,913.50 at the previous market close.

Investors were also trading based on corporate earnings, the drop in crude oil prices in the global market, and US President Donald Trump’s statement to escort ships safely out of the Strait of Hormuz, bringing temporary relief in the markets.

Stocks such as Adani Ports, Eicher Motors, Jio Financial Services, Adani Enterprises, and Reliance Industries were among the top gainers on Monday, while others like Kotak Mahindra Bank, Bharti Airtel, Dr Reddy's, ONGC, and TCS were among the top losers.