Indian stock market rallied for the sixth consecutive day as the Sensex soared nearly 2,009 points and the NSE Nifty surged 576 points on Thursday, November 5. A significant downside in crude prices amid hopes of a resolution to the West Asia conflict after the US president lost midterm elections.
Additionally, sustained foreign fund inflows and positive global cues gave a boost to the market.
Sensex, the 30-share BSE index, zoomed 2,008.61 points, or 2.60 per cent, to settle at 79,310.01. Meanwhile, Nifty50, the 50-share NSE index, skyrocketed 576 points, or 2.40 per cent, to end at 24,536.60.
Mid-Day Market Update
Sensex, Nifty soared over 2.5 per cent in afternoon trade, continuing the early-hour strong bullish momentum. Sensex rose 2,163.63 points to a high of 79,465.03. Nifty50 skyrocketed over 619.3 points to a high of 24,579.90.
At around 2:54 PM, the BSE index was trading at 79,430.50, up 2,129.10 points or 2.75 per cent. Nifty50 was quoted at 24,565.35, up 604.75 points or 2.52 per cent
Rally In Early Hours
Key Indian equity benchmark indices, Sensex and Nifty, soared nearly 2 per cent in early trade on Thursday after a rally in the US market following US midterm election results, a sharp decline in crude rates, and firm global cues. BSE Sensex soared 1,621 points to an early high of 78,922.44, up from the previous close of 77,301.40. NSE's Nifty50 soared 431.35 points to a high of 24,391.95.
At around 9:40 AM, Nifty50 was trading at 24,358.95, up 398.35 points or 1.66 per cent. BSE Sensex was quoted at 78,762.07, up 1460.67 points or 1.89 per cent.
Key Factors Behind Sharp Rally in the Stock Market
Sharp Decline In Crude Prices
Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, believes that as tailwinds for the economy get stronger, the bullish trend in the market is set to continue.
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"The strongest positive for the market is the sharp 10% fall in Brent crude to around the $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 mid-terms," Vijaykumar noted.
2. Foreign Fund Inflow
FII buying volume is increasing steadily as they turned buyers in the past four trading sessions
"There is more short-covering to happen in large-caps and, therefore, expect further rebound in large-caps led by the banking/financial majors," he added.
3. US Midterm Elections And US Market
US market closed sharply higher after President Donald Trump's defeat in the midterm election, giving a boost to markets across the world.
"Global sentiment has improved following the US midterm election outcome, with Wall Street gaining as political uncertainty eased. Softer geopolitical risk concerns around Iran and a weaker US dollar are also supporting global risk appetite," said Sachin Gupta, VP – Technical Research, Choice Broking.
Top Gainers And Losers
Except for NTPC and Bharti Airtel, all other stocks from the Sensex basket were trading higher.
Maruti Suzuki, Bajaj Finance, Indigo, Asian Paints, Mahindra And Mahindra, Tech Mahindra, Infosys, HCL Tech, TCS, Ultratech Cement, and ICICI Bank were top gainers, at around 10:00 AM.