Equity benchmarks Sensex and Nifty opened with a massive jumped on Thursday as crude oil prices slumped to a two-month low, with investors betting that the Democrats’ victory in the US midterm elections could hasten an end to the US-Israeli war on Iran.
After opening about 1,300 points up, Sensex stood at 78,722.77, extending the gains to 1,421.37 points or by 1.84 per cent at around 9:17 am on Thursday. At around 9:50 am, the equity benchmark index was over 1,600 points up. Track US midterm election results LIVE here
GIFT Nifty futures were trading at 24,295.5 as of 8:01 am, signalling a positive opening for the benchmark Nifty 50, which closed at 23,960.6 on Wednesday, according to figures cited in a Reuters report.
The 30-share BSE Sensex rose 383.55 points, or 0.50 per cent, to settle at 77,301.40 on Wednesday, its highest close in more than two months. During the day, it surged 478.19 points, or 0.62 per cent, to 77,396.04, according to PTI news agency data. In the five-day rally through Wednesday, Sensex soared by over 4,000 points or 5 per cent.
Foreign institutional investors (FIIs) bought Indian shares worth ₹72,840 crore ($769.65 million) on Wednesday, according to provisional data. This marked their fourth consecutive session of net buying, indicating a possible return to Indian equities after a heavy sell-off earlier this year.
Brent crude futures fell a per cent to $93.5 per barrel, extending losses after plunging 8.7% in the previous session.
US Democrats seize control of both Congress chambers
US and European stocks rallied on Wednesday after Democrats seized control of both chambers of Congress in the US midterm elections, offering greater political clarity and easing uncertainty that had weighed on global markets.
The Democrats’ victory is being viewed as a strong rebuke to President Donald Trump, whose administration’s global tariff policies and decision to wage war in the Middle East have also contributed to the Indian market’s underperformance this year.
Domestic equities, meanwhile, are showing signs of a recovery. The Nifty 50 and BSE Sensex have gained 5.6 per cent over the past five sessions, marking their longest winning streak in nearly five months. The rally has been supported by sustained foreign investor buying, easing crude oil prices and strong corporate earnings.
“Unlike the earlier gradual decline (in oil prices), the magnitude of this move can materially improve India’s near-term macro and earnings outlook if sustained,” said Hariselvan Radhakrishnan, founder and CEO of research advisory firm HST Wealth.