Sensex surges 1,400 points as US midterm results, crude crash lift investor mood

Markets opened sharply higher on Thursday, extending the previous session's gains, as a steep decline in crude oil prices, renewed foreign investor buying and improving global sentiment lifted investor appetite.The BSE Sensex was trading at 78,651.14, up 1,349.74 points or 1.75%, at 9:24 am. The index had opened at 78,910.94 and touched an early high of 78,922.44.The NSE Nifty 50 was at 24,336.30, up 375.70 points or 1.57%, at 9:25 am. The index opened at 24,378.05 and touched an early high of 24,391.95.The rally followed a positive session on Wednesday, when the Sensex closed at 77,301.40, gaining 383.55 points, while the Nifty settled at 23,960.60, up 149.75 points.BROAD-BASED BUYING LIFTS MARKETS Buying was visible across most sectors and heavyweight stocks in early trade. Among the Sensex constituents, IndiGo was the top gainer, rising 5.07%, followed by Bajaj Finance, which gained 4.63%. Asian Paints advanced 4.18%, while Mahindra & Mahindra rose 3.84% and Maruti Suzuki gained 3.71%.UltraTech Cement was up 2.91%, Larsen & Toubro gained 2.64%, HDFC Bank rose 2.57% and ICICI Bank advanced 2.46%. Bajaj Finserv, Axis Bank, Infosys, HCL Technologies and TCS were also trading higher. All the Sensex constituents visible in the early market snapshot were in positive territory.Sectorally, Nifty Auto led the gains, rising 2.04%. Nifty Realty advanced 1.94%, while Nifty Financial Services 25/50 gained 2.41%. Nifty Financial Services ex-Bank was up 2.72%, and Nifty PSU Bank and Nifty Private Bank rose 1.55% and 1.57%, respectively.Nifty IT gained 1.60%, while Nifty Media and Nifty Metal advanced 1.24% and 0.84%. Nifty FMCG rose 0.84%, and Nifty Oil & Gas was up 0.85%. Nifty Healthcare and Nifty MidSmall Healthcare were among the few sectoral indices trading lower.The broader market also participated in the rally. Nifty 100 gained 1.47%, Nifty 200 rose 1.37% and Nifty 500 advanced 1.32%. Nifty Midcap 100 was up 0.97%, while Nifty Smallcap 100 gained 0.71%.CRUDE OIL FALLS FURTHERA sharp decline in global crude oil prices remained one of the biggest positive triggers for Indian markets.Brent crude was trading at $93.59 per barrel, down 1.09%, while US West Texas Intermediate (WTI) crude fell 1.53% to $86.77, according to the latest market snapshot.The decline in oil prices has been driven by hopes of a possible easing of the US-Iran conflict following the US midterm election outcome. A sustained fall in crude could offer relief to India, which depends heavily on imports to meet its oil requirements.FIIs RETURN TO BUYINGForeign institutional investors have also turned buyers in Indian equities after a period of sustained selling.Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said FIIs bought equities worth Rs 20,834 crore in the cash market over the last four trading sessions. He also pointed to a steady increase in buying volumes.Vijayakumar said the decline in crude prices, improving resilience in the Indian economy and an improvement in corporate earnings had contributed to a change in the foreign investors' stance towards India.US MIDTERM OUTCOME ADDS TO GLOBAL OPTIMISMThe outcome of the US midterm elections has also added to hopes of lower global trade uncertainty and a possible de-escalation of the Iran conflict.A shift in congressional control could potentially limit President Donald Trump's ability to push aggressive trade and tariff policies. This may improve sentiment towards emerging markets, including India, although the impact is likely to be indirect.Dr Ravi Singh, Chief Research Officer at Master Capital Services Ltd, said the election outcome could support foreign institutional inflows into Indian equities if it eases global trade uncertainty.However, the extent of the benefit will depend on how geopolitical developments, crude prices, currency movements and global trade policies evolve.Dr V K Vijayakumar said the market's bullish trend could continue as economic tailwinds strengthen. He identified the sharp fall in Brent crude, hopes of a resolution to the US-Iran conflict and improving corporate earnings as key positives.He also expects further short-covering in large-cap stocks, particularly banking and financial majors. However, he cautioned that profit booking could emerge at higher levels, with domestic institutional investors showing an inclination to sell on rallies.Vijayakumar also flagged the possibility of prolonged political conflict in the US, noting that the initial positive reaction to the election outcome could weaken.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends