Sensex jumps over 1,600 points, Nifty crosses 24,400 as crude oil hits two-month low

Indian equity markets opened sharply higher on Thursday, with the Sensex and Nifty extending their winning streak as falling crude oil prices and renewed foreign investor inflows lifted sentiment. Investors also welcomed the Democratic Party's victory in the US midterm elections, betting that the electoral outcome could accelerate efforts to end the US-Israeli war on Iran.

The BSE Sensex opened nearly 1,300 points higher at 78,722.77 and extended its gains to 1,421.37 points, or 1.84 per cent, by around 9.17 am. At approximately 9.50 am, the index was trading more than 1,600 points higher.

The Nifty 50 also crossed the 24,300 mark, rising 1.66 per cent to 24,357.3 by 9.18 am. By 10.28 am, the Sensex had climbed 1.94 per cent to 78,798.25, while the Nifty advanced 1.78 per cent to 24,387.85, taking both benchmarks close to their highest levels in three months.

The rally followed a strong session on Wednesday, when the 30-share Sensex gained 383.55 points, or 0.50 per cent, to close at 77,301.40, its highest closing level in more than two months. During the session, it had climbed 478.19 points, or 0.62 per cent, to touch 77,396.04, according to PTI data.

The Nifty 50 ended Wednesday's session at 23,960.60. GIFT Nifty futures stood at 24,295.5 at 8.01 am on Thursday, signalling a positive opening for the domestic benchmark.

The latest gains extended a five-session rally during which the Sensex advanced more than 4,000 points, or around 5 per cent. The Nifty 50 and Sensex had gained approximately 5.6 per cent over the preceding five trading sessions. With Thursday's gains, both indices were up nearly 8 per cent over six sessions, marking their longest winning streak in around a year.

Falling crude oil prices boost market sentiment

A sharp decline in international crude oil prices provided a major boost to Indian equities. Brent crude futures fell around 1 per cent to $93.50 per barrel on Thursday, extending losses after plunging 8.7 per cent in the previous session. The global benchmark touched a two-month low of around $93.22 per barrel.

US West Texas Intermediate (WTI) crude futures also declined, trading below $87 per barrel. Both benchmarks had recorded their lowest settlement levels since August 31 in the previous session.

Lower oil prices are particularly significant for India, which relies heavily on imports to meet its energy requirements. A sustained decline could ease inflationary pressures, reduce the country's import bill and improve the earnings outlook for businesses exposed to higher energy costs.

Commenting on the impact of the latest movement, Hariselvan Radhakrishnan, founder and chief executive of research advisory firm HST Wealth, said the scale of the decline was significant.

"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," he said.

Foreign institutional investors (FIIs) also continued to support the market recovery. According to provisional data, they purchased Indian equities worth ₹7,284 crore ($769.65 million) on Wednesday. This marked their fourth consecutive session of net buying, suggesting a possible return to Indian stocks following a substantial sell-off earlier this year.

The latest foreign inflows also contributed to November's investment figures, with foreign investors having brought approximately $1.57 billion into Indian equities during the month.

The broader market participated in Thursday's rally, with 14 of the 16 major sectors trading higher. Small-cap and mid-cap indices also advanced more than 1 per cent each. Among individual stocks, Asian Paints gained around 4.2 per cent, while IndiGo rose approximately 5.3 per cent.

The sustained foreign inflows, easing crude prices and encouraging corporate earnings have collectively supported the recent recovery in domestic equities.

US midterm results add to global market optimism

Global markets also witnessed a strong rally on Wednesday after the Democrats secured control of both chambers of the US Congress in the midterm elections. US and European stocks advanced as the election outcome offered greater political clarity and eased uncertainty that had been weighing on investor sentiment.

On Wall Street, the Dow Jones Industrial Average surged more than 3 per cent, while the S&P 500 gained around 1.6 per cent and the Nasdaq Composite advanced approximately 1.4 per cent.

The Democratic victory is being interpreted as a significant setback for US President Donald Trump and his administration. Investors are assessing whether the change in the balance of power in Congress could influence Washington's approach to international trade and the ongoing conflict in the Middle East.

Trump's global tariff policies and the decision to wage war in the Middle East have contributed to the relative underperformance of Indian equities this year. Investors are now betting that the Democrats' electoral gains could weaken the administration's ability to pursue further military escalation against Iran and increase the likelihood of a diplomatic settlement.

The prospect of an end to the conflict has also contributed to the decline in crude oil prices, providing relief to oil-importing economies such as India. However, market participants remain watchful of geopolitical developments and the possibility of further volatility in energy markets.

With foreign investors returning, oil prices retreating and corporate earnings providing support, domestic benchmarks have staged a notable recovery after facing sustained pressure earlier in the year.