Indian stock market gains nearly 2 per cent in early trade
Benchmark indices reached a three-month high as crude oil prices fell below $100 per barrel following US midterm election results.
The Indian stock market rose nearly 2 per cent in early trade on Thursday, reaching a nearly three-month high. According to The Indian Express, the Nifty 50 index stood at 24,347.80, up 1.7 per cent, at 10:10 AM, crossing the 24,000 level. The BSE Sensex index increased by 1,453.06 points, or 1.9 per cent, to reach 78,754.46.
Global markets rallied after Democrats won the US midterm elections, which helped pull crude oil prices below the $100 per barrel mark. Brent crude has fallen nearly 10 per cent over recent sessions to approximately $94 per barrel. This drop has eased pressure on high net importers like India.
Pabitro Mukherjee, deputy vice president of research at Bajaj Broking, said that if the index stays above 24,000, it could move towards 24,400 and 24,700 levels in upcoming sessions. VK Vijaykumar, chief investment strategist at Geojit Investments, noted that the sharp fall in Brent crude is a major positive factor, driven by expectations of a resolution to the US-Iran conflict.
Sectoral indices, including banks, IT, and financial services, gained around 2 per cent each, while healthcare was the only sector that did not gain. On the Nifty 50, 43 of the 50 components traded higher, with Shriram Finance, Interglobe Aviation, and Asian Paints seeing gains of 4-6 per cent.
The market rally follows positive earnings for the July-September quarter and increased buying by foreign investors. Provisional exchange data shows foreign investors purchased Indian shares worth $769.65 million on Wednesday, bringing their total purchases for the month to over $1.5 billion.