Sensex, Nifty extend gains for fifth day as foreign investors fuel festive rally

New Delhi: Dalal Street continued its festive rally on Wednesday, with benchmark indices Sensex and Nifty extending gains for the fifth consecutive session, supported by renewed foreign institutional buying, encouraging corporate earnings and easing crude oil prices.

However, the market showed signs of caution after Tuesday's spectacular surge, as investors assessed global uncertainties, particularly the US midterm elections and developments in the Middle East.

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According to Reuters, the 30-share BSE Sensex rose to 77,080.95, gaining around 0.2 percent at 9:17 am, while the NSE Nifty advanced 0.1 percent to 23,840.15.

Foreign investors bring back the bulls

The biggest boost to market sentiment came from foreign institutional investors (FIIs), who purchased equities worth Rs 6,836.81 crore on Tuesday, according to provisional exchange data.

The renewed inflows signal improving foreign investor appetite for Indian equities following a period of uncertainty.

Domestic institutional investors, however, were net sellers to the tune of Rs 3,678.85 crore on Tuesday.

Sensex rallies nearly 3,700 points in four sessions

Tuesday's session had delivered one of the strongest recent gains for domestic equities.

The Sensex surged 1,225.07 points, or 1.62 percent, to close at 76,917.85, while the Nifty jumped 370.05 points, or 1.58 percent, to settle at 23,810.85.

Over the previous four sessions, the Sensex accumulated gains of nearly 5 percent, with the Nifty recording a similar advance.

Strong corporate earnings, attractive valuations in banking stocks and renewed foreign buying have helped sustain the recovery.

ITC, SBI lead gains; IT stocks under pressure

Buying interest was concentrated in select banking, consumer and defence-related stocks.

ITC, State Bank of India, HDFC Bank, Adani Ports and Bharat Electronics were among the leading Sensex gainers. Power Grid, Tata Consultancy Services, Bharti Airtel, Hindustan Unilever and HCL Technologies traded lower.

The Nifty FMCG index rose 1.6 percent around 9:29 am, while the Nifty IT index declined 0.74 percent, highlighting the uneven nature of Wednesday's advance.

Softer crude prices offer relief

Brent crude futures slipped to around USD 103.20 per barrel in early Asian trading, providing some relief to India's import-dependent economy.

Global market sentiment, however, remained cautious as investors assessed the outcome of the US midterm elections and their potential implications for trade, energy prices and geopolitical developments.

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The broader Indian market also showed signs of weakness despite gains in the benchmark indices, indicating that buying remained concentrated in select heavyweight stocks.

For now, Dalal Street's festive momentum remains intact, but the fifth session of gains is proving more measured than Tuesday's spectacular rally.

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