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New Delhi: Indian equity benchmarks surged in early trade on Thursday, with the Sensex climbing more than 1,400 points and the Nifty crossing the 24,300 mark, as a sharp decline in crude oil prices, sustained foreign fund inflows and strong overnight gains on Wall Street boosted investor sentiment.
The 30-share BSE Sensex jumped 1,403.71 points to 78,689.87, while the broader NSE Nifty rallied 378.85 points to 24,340.40 in early deals.
The rally came amid growing expectations of a possible resolution to the US-Iran conflict following the Democratic Party’s sweeping victories in the US midterm elections, which have increased political pressure on President Donald Trump’s administration.
Brent crude, the global oil benchmark, declined 1.07 percent to USD 93.61 per barrel, extending a sharp correction that has seen prices fall nearly 10 percent on expectations of easing geopolitical tensions.
Lower crude prices are particularly favourable for India, a major oil importer, as they could help contain inflation, reduce import costs and improve corporate profitability.
Among Sensex constituents, InterGlobe Aviation, Asian Paints, Bajaj Finance, Maruti Suzuki, Mahindra & Mahindra and UltraTech Cement were among the leading gainers. Kotak Mahindra Bank and Bharti Airtel, however, traded lower.
Foreign institutional investors continued their buying spree, purchasing equities worth Rs 7,284.03 crore on Wednesday, according to exchange data.
Investor sentiment also received support from strong overnight gains in US equities. The Dow Jones Industrial Average surged 3.03 percent, while the S&P 500 advanced 1.58 percent and the Nasdaq Composite gained 1.44 percent.
Asian markets presented a mixed picture, with Japan’s Nikkei 225 and South Korea’s Kospi trading lower, while Hong Kong’s Hang Seng and China’s Shanghai Composite recorded gains.
“With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10 percent fall in Brent crude to around USD 94 level. This decline is on hopes that a resolution to the US-Iran conflict is likely soon since this conflict and the consequent high crude prices contributed significantly to the Republican rout in the midterms,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
The US election outcome has raised expectations that Washington could pursue negotiations with Iran to ease geopolitical tensions and stabilise global energy markets.
However, market experts cautioned that the decline in crude prices remains driven largely by expectations rather than any confirmed settlement.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the correction in crude and US Treasury yields had improved the broader investment environment. He noted that a sustained decline in oil prices could significantly strengthen India’s near-term economic and corporate earnings outlook, although any setback in negotiations could trigger renewed volatility.
Thursday’s sharp opening gains followed a strong session on Wednesday, when the Sensex advanced 383.55 points, or 0.50 percent, to close at 77,301.40, its highest closing level in more than two months.
The Nifty gained 149.75 points, or 0.63 percent, to settle at 23,960.60.
Over the preceding five trading sessions, the Sensex had climbed 4,055.37 points, or 5.53 percent, while the Nifty advanced 1,261.75 points, or 5.55 percent, reflecting improving investor confidence amid global market volatility.
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