Sensex Soars 1,497 Points, Nifty Jumps 430 Points As Oil Prices Crash And FIIs Turn Buyers

Mumbai, Nov 5: Indian equity markets witnessed a strong rally on Thursday, with benchmark indices Sensex and Nifty 50 surging nearly 2% each in morning trade, buoyed by falling crude oil prices, renewed foreign investor inflows and positive global cues.

At around 11:28 am, the BSE Sensex was trading at 78,798.76, up 1,497.36 points or 1.94%. Meanwhile, the NSE Nifty 50 climbed 430.50 points or 1.80% to 24,391.10.

Five key factors contributed to the market rally.

1. Sharp Decline In Crude Oil Prices

A steep correction in international crude oil prices emerged as a major catalyst, with Brent crude slipping towards $94 per barrel. Lower oil prices are expected to ease India’s import burden, contain inflationary pressures and improve corporate profitability.

2. Foreign Investors Resume Buying

Foreign institutional investors (FIIs) returned to Indian equities after an extended period of selling. They purchased shares worth Rs 7,284 crore on November 4, marking their fourth consecutive session of net buying and strengthening investor confidence.

3. Positive Global Political Developments

Democrats’ gains in the US midterm elections have raised hopes of reduced trade uncertainty and a possible easing of geopolitical tensions involving Iran. These developments have improved global risk appetite, supporting emerging-market equities.

4. Stronger Rupee, Declining US Bond Yields

The appreciation of the Indian rupee and a decline in US bond yields provided additional support to domestic markets. Lower US yields make emerging-market equities relatively attractive, while a stronger rupee can encourage foreign capital inflows.

5. Heavyweight Stocks Lead Gains

Strong buying interest in banking, automobile and financial stocks further lifted the benchmark indices. Shares of IndiGo, Bajaj Finance, Asian Paints and Maruti Suzuki registered sharp gains during morning trade. Expectations of improved corporate earnings also contributed to the positive sentiment.

The combination of favourable global cues, falling crude prices and renewed foreign investment helped markets recover momentum, with investors closely tracking developments in domestic and international markets.