Indian equities surge as oil prices plunge and foreign buying spikes
The Sensex rose over 2,000 points on Thursday, driven by an 8% drop in crude oil, renewed foreign investor inflows and a rally in US markets after the Democrats won the US midterm elections.
Indian stock indices jumped sharply on Thursday, with the Sensex climbing more than 2,000 points to 79,330 and the Nifty 50 gaining 581 points to 24,548.55. The rise added roughly Rs 8 lakh crore to the market capitalisation of BSE-listed companies within the trading session.
The rally was anchored by an 8.7% fall in Brent crude and a similar decline in US West Texas Intermediate, which lowered the cost of imported oil for India. Analysts noted that cheaper oil could ease pressure on the rupee, reduce inflation risks and improve corporate margins.
Foreign institutional investors purchased Indian equities worth Rs 7,284 crore on Wednesday, marking their highest single-day buying since late October 2025 and the fourth consecutive day of net inflows. Cumulative foreign purchases in November have exceeded Rs 17,000 crore after a period of heavy selling in September and October.
US equity markets also posted gains, with the S&P 500 up 1.6%, the Dow Jones Industrial Average rising about 3% and the Nasdaq Composite gaining 1.4% following the Democrats' victory in the midterm elections, which reduced political uncertainty and lifted global risk appetite.
Ankita Pathak, head of global investments at Ionic Asset, said the election outcome could eventually lower US bond yields and weaken the dollar if political gridlock curtails fiscal spending and geopolitical tensions ease. She cautioned, however, that inflation might stay elevated and that expanding AI-related data centre activity could strain electricity supplies.
The combined effect of lower oil prices, foreign buying and improved sentiment on Wall Street contributed to the six-day winning streak for Indian markets.