With the BJP-led NDA getting trounced in Bihar assembly polls, the stock market is expected to turn volatile, with experts anticipating a knee-jerk downward move tomorrow.


Besides the election results of politically-important state, the last leg of quarterly earnings will have a bearing on stock-specific trading during the Diwali-shortened week, as per the analysts.


"The market was building on this outcome over the week gone by, with Nifty slipping below 8,000. We could see a knee-jerk reaction tomorrow and then a phase of recovery and consolidation over the Diwali-shortened week," Centrum Broking CEO K Sandeep Nayak said.


The victory of the Nitish Kumar-led Grand Alliance, comprising JDU, RJD and Congress, in Bihar is expected to have a bearing on the economic reform agenda of the BJP-led NDA government at the Centre as well as it does not have majority in the upper house of the Parliament.


"With Bihar behind us, markets would focus on the domestic front on the progress of GST and other pending Bills in the winter session of Parliament and the ask of the government on this front now stands elevated. On the international front, the market would keenly watch the US Fed's rate hike commentary/action," Nayak added.


Stock markets would remain closed on Wednesday and Thursday for Diwali Laxmi pujan and Diwali Balipratipada, except for a one-hour Muhurat trading on Wednesday evening.