Mumbai/IBNS-CMEDIA: The Indian stock market rallied sharply at the opening bell on Thursday, tracking a steep fall in crude oil prices and positive global cues following the Democratic Party’s victory in the US midterm elections, media reports said.
Investors’ wealth increased by nearly Rs 7 lakh crore within an hour of trading as Dalal Street cheered the election outcome and the easing of global crude oil prices.
The BSE Sensex surged over 1,300 points to 78,630, while the NSE Nifty crossed the 24,350 mark in early trade.
The Sensex later extended its gains to more than 1,400 points.
Democrats’ victory deals blow to Trump Republicans
The rally followed a major political setback for US President Donald Trump, whose Republican Party lost control of both the Senate and the House of Representatives in the midterm elections.
The Democratic Party’s victory has raised expectations of a possible shift in Washington’s approach to the ongoing US-Israeli conflict with Iran.
Investors have also been weighing the possibility of greater political uncertainty for the Trump administration following the Republican defeat.
The election outcome triggered a strong rally on Wall Street overnight, with major US indices advancing.
The S&P 500 gained 1.6 per cent, while the Dow Jones Industrial Average jumped nearly 3 per cent.
Crude oil prices slide, lifting market sentiment
The sharp decline in international crude oil prices emerged as another major factor behind the rally in Indian equities.
Brent crude plunged 8.7 per cent in the previous trading session, falling to around $94 per barrel, amid expectations that the Democratic victory could improve prospects for an end to the US-Israeli war involving Iran.
The decline in oil prices is particularly significant for India, which relies heavily on crude imports to meet its energy requirements.
Cheaper oil can help reduce the country’s import bill, ease inflationary pressures and improve the outlook for companies sensitive to fuel costs.
The positive global cues, falling crude prices and renewed foreign investor interest combined to lift sentiment across Dalal Street.
