Indian stock market benchmark indices, Sensex and Nifty, extended their winning run on Wednesday, supported by easing crude oil prices and strong foreign fund inflows.
At 3:33 pm during the closing session auction, the BSE Sensex closed at 81,979.40, up by 772.75 points or 0.95% after gaining 400 points in a late surge. Meanwhile, Nifty was up by 210.40 points on Wednesday, ending at 25,255.05 (0.84%). Meanwhile, the rupee rose 8 paise to close at 93.69 against the US dollar.
Both indices started on an eight-month high as easing crude oil prices and caution around AI investments fuelled foreign inflows. They are also on track for their strongest monthly performance since November 2020.
Profit booking trims gains
The stock markets were closed on Tuesday on the occasion of Diwali Balipratipada, and began on a strong note on Wednesday. Around 9:48 am IST, the Sensex jumped to 82,467.26, up 1,360.61 points, or 1.68%, from Monday's close of 81,106.65. The Nifty was at 25,402.10, up 357.45 points, or 1.43%.
However, domestic equity markets witnessed sharp profit booking in the afternoon trade, surrendering most of their early gains after a strong showing. Selling pressure was most visible in IT, pharma and realty stocks.
In the broader markets, the Nifty Midcap 100 gained 0.41%, while the Nifty Smallcap 100 advanced 1.47%, indicating stronger performance among small-cap stocks. Among sectoral indices, the Nifty PSU Bank index emerged as a major gainer, rising 2.66%. The Nifty Chemicals index jumped 1.85%, while the Nifty Auto index gained 1.36%.
{{/usCountry}}In the broader markets, the Nifty Midcap 100 gained 0.41%, while the Nifty Smallcap 100 advanced 1.47%, indicating stronger performance among small-cap stocks. Among sectoral indices, the Nifty PSU Bank index emerged as a major gainer, rising 2.66%. The Nifty Chemicals index jumped 1.85%, while the Nifty Auto index gained 1.36%.
{{/usCountry}}On the other hand, the Nifty IT index fell by 0.53%, followed by Nifty Pharma by 0.41% and Nifty Realty by 0.42%.
What is boosting the markets?
Falling oil prices and AI stocks since the US midterm elections have fuelled a turnaround in foreign investor sentiment towards Indian markets after a two-year exodus, as foreign portfolio investors bought $5.68 billion of Indian shares this month.
The Nifty and Sensex have soared 10% and 10.5%, respectively, so far in November, on track for their best month since November 2020 and outperforming emerging market peers.
Brent crude futures hovered around $93 per barrel on Wednesday, after hitting a two-month low of $89.16 in the previous session as US officials ruled out military action against Iran, easing concerns over supply disruptions to India.
(with inputs from agencies)