Indian stock markets rallied sharply on Thursday, as falling crude oil prices, renewed foreign investor buying and gains on Wall Street following the US midterm election results lifted market sentiment.
At 9:18 am, the BSE Sensex was trading at 78,719.72, up 1,418 points or 1.83%, while the NSE Nifty 50 rose 1.66% to 24,357.30, according to the reports.
The gains followed Wednesday’s close, when the Sensex settled at 77,301.40 and the Nifty at 23,960.60.
Falling crude prices provided a major boost to Indian equities. Brent crude declined 1% to $93.50 per barrel on Thursday after dropping 8.7% to $94.62 in the previous session.
The decline followed hopes of reduced geopolitical tensions after Democrats secured control of both chambers of the US Congress. Lower oil prices could ease India’s import bill and inflationary pressures.
Foreign investor inflows also supported the market. Overseas investors purchased Indian shares worth Rs 7,284 crore on Wednesday, marking their fourth consecutive session of net buying.
Wall Street also ended higher after the US election results, with the Dow Jones gaining 3%, while the S&P 500 and Nasdaq advanced 1.6% and 1.4%, respectively.
Market participants will continue tracking crude prices, foreign fund flows, global developments and corporate earnings to assess whether the rally can sustain.
