Indian Stock Markets on Thursday opened the trading session on a strong note, with benchmark indices Sensex and Nifty witnessing a sharp rally at the opening bell. The BSE Sensex surged over 1,300 points in early trade, reflecting strong buying interest across the market, while the NSE Nifty also opened with significant gains.
At 9:16 AM, Sensex was up by 1367.69 points or 1.77% at 78,669.09 while Nifty was at 24,339.85, up by 379.25 points or 1.58%.
Dalal Street cheered a sharp decline in global crude oil prices following US President Donald Trump’s Republican Party suffering a major setback in the midterm elections. The Democrats’ victory in both chambers of Congress and the resulting over 8% plunge in oil prices lifted investor sentiment, offering a positive trigger for domestic equities amid expectations of relief on the inflation and corporate cost fronts.
The strong opening marked a positive start for Dalal Street, with investors tracking global market cues and developments in crude oil prices. The sharp decline in international oil prices also provided a potential boost to investor sentiment, given India’s dependence on imported crude and the implications of lower oil prices for inflation, corporate costs and the country’s import bill.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10% fall in Brent crude to around $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. After the initial reaction to the US election results weakens, there will be concerns surrounding prolonged political conflict in the US, since Trump being what he is, is likely to turn Mr Veto rather than lame duck president.”
Trump Takes A Hit, Dalal Street Hits The High: Sensex Soars 1,400 Points
