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Surging Indian markets cheer falling oil and US election outcomes
Dalal Street witnessed robust buying activity during early Thursday trade, pushing benchmark indices sharply higher. Benchmark Sensex skyrocketed nearly 1,400 points to trade around 78,820.40, while Nifty 50 comfortably breached the 24,300 mark. Global sentiment improved notably following US midterm election outcomes, where Democratic control of both congressional chambers raised expectations of moderated trade tariffs from President Donald Trump. Such geopolitical shifts often dictate capital flows into emerging markets seeking policy stability.
Crude oil decline boosts sentiment
Falling global energy prices provided substantial relief to domestic investors. Brent crude slipped 1.09% to $93.59 per barrel, alongside West Texas Intermediate dropping 1.53% to $86.77. Lower crude oil valuation reduces import burdens for energy-dependent nations like India, directly shrinking input costs for various businesses. Market observers noted that easing tensions between Washington and Tehran further dragged fuel prices downward, benefiting transport operators and airlines specifically.
Foreign inflows drive momentum
Overseas investors returned strongly to Indian equities, injecting Rs 20,834 crore across the cash market over four consecutive trading sessions. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, credited this renewed buying to robust corporate earnings and resilient domestic economic indicators. He also cited investor speculation regarding potential abolitions of long-term capital gains tax in upcoming national budgets as a contributing factor.Multiple sectors participated in the upward trajectory, with aviation firm IndiGo leading gains by jumping 5.07%. Financial heavyweights Bajaj Finance, HDFC Bank, and ICICI Bank posted strong advances, alongside automakers Mahindra & Mahindra and Maruti Suzuki. Dr Ravi Singh of Master Capital Services Ltd indicated that reduced global trade uncertainty could sustain these foreign equity allocations over coming weeks, though experts caution that short-covering might eventually face profit booking.
DISCLAIMER:Prameya or Prameya News7 does not endorse the views or recommendations expressed by experts/brokerages in this article. These are solely their opinions. Readers are advised to consult with a qualified financial advisor before making any investment or trading choices.
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