Finance1 min read

Terrific Thursday for stock market! Nifty jumps 576 pts, Sensex 2,009 pts after US election results; bank, IT shares fly

By · Published by Everything Blog

In short

The benchmark indices recorded their sixth consecutive day of gains, buoyed by declining Brent crude prices that settled near a two-month low. Market optimism was reinforced by expectations that changes in the U.S. Congress could moderate global trade and geopolitical tensions. Foreign institutions added substantial momentum, injecting more than $3 billion into local shares over a 10-session period. However, analysts caution that high relative strength index readings could prompt near-term consolidation despite current technical strength.

Key points

  • Subdued oil prices and shifting geopolitical expectations from U.S. election results are…: Subdued oil prices and shifting geopolitical expectations from U.S. election results are actively easing domestic inflation concerns.
  • Technical indicators suggest the market faces potential near-term consolidation following…: Technical indicators suggest the market faces potential near-term consolidation following six consecutive sessions of equity gains.
  • Market trajectory going forward depends heavily on sustained foreign capital inflows and…: Market trajectory going forward depends heavily on sustained foreign capital inflows and continued stability in global energy markets.

Sources checked by our analysis pipeline: 1

Indian stocks extended their bull run for the sixth consecutive session in Thursday’s trade, driving the benchmark indices to their biggest single-day gains in seven months, as a sharp fall in crude oil prices eased inflation concerns and pressure on the external finances of the oil-importing nation.

The Sensex closed at 79,310, up 2,008 points, or 2.60%, from its previous close of 77,301. The Nifty settled at 24,536, gaining 576 points, or 2.40%, from its Wednesday's close of 23,960.60.

Similar gains in both indices were last recorded in April. The broader markets also participated in the rally, with the Nifty Midcap 100 index surging 2%, while the Nifty Smallcap 100 index advanced 0.60%.

Among sectoral indices, the Nifty Auto index led the gains with a sharp 4% rise. It was followed by realty, private banks, cement, PSU banks, IT, and consumer durables, all of which closed with gains of more than 2%.

Brent crude held near a two-month low after sliding nearly 9% in the previous session, as investors bet that a Democratic sweep in the US midterm elections could…

Finance