Nifty 50 hits three-month high as oil price drop and foreign inflows boost Indian markets
The Nifty 50 rose 2.4% to 24,536.60, its biggest single-day gain since early April, driven by lower crude prices, renewed foreign institutional buying and stronger global cues.
India’s benchmark Nifty 50 index surged 576 points, or 2.40%, to 24,536.60, marking its largest one-day rise since April 8 and the first close above 24,500 since August 7. The rally pushed BSE market capitalisation past the Rs 500 lakh crore threshold and added roughly Rs 8 lakh crore to investor wealth in a single session.
Market analysts said the move was sparked by a sharp correction in crude oil prices, as Brent fell to a two-month low following the U.S. midterm election outcome, which eased inflation and external-sector concerns for the oil-importing economy. Foreign institutional investors (FIIs) bought shares worth Rs 20,834 crore over the four trading sessions into November, a reversal from the outflows recorded in September and October.
"Indian equities are expected to maintain a positive trajectory due to a sharp correction in crude oil prices, resumption of FII buying and firm global cues," said Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services.
"NSE cash-market turnover jumped 30% from the previous session, signalling broader and stronger participation in the rally," said Nandish Shah, Deputy Vice-President at HDFC Securities.
The rupee strengthened for a fifth straight session to 94.47 per dollar, while benchmark bond yields fell to 7.07%. Sectoral gains were broad-based, with financial services ex-banks up 4.24%, autos 4.14%, realty 3.52% and PSU banks 3.13%. Companies such as Bajaj Finance, Shriram Finance and Mahindra & Mahindra led the gains.
"Companies that were adversely impacted by the sharp surge in crude oil prices are now emerging as major beneficiaries of the recent correction in crude," said Shrikant Chouhan, Head of Equity Research at Kotak Neo.
Analysts offered mixed outlooks. Nomura expects the Nifty to surpass its March 2027 target of 24,000, citing improved earnings, valuations below post-pandemic averages and potential long-term capital gains tax relief. Bernstein, however, lowered its December 2026 target to 25,000, warning that tax cuts alone may not sustain foreign inflows.
Technical analysis shows the index has reclaimed its 200-day simple moving average at 23,997, a bullish signal, with immediate resistance near 24,773 and support around 24,300. A sustained move above 24,773 could open a path toward the psychologically important 25,000 level.
Analysts cautioned that a rebound in oil prices, a slowdown in FII buying, or limited earnings breadth across sectors could reverse the rally.
The rally comes ahead of Muhurat Trading on November 8, as investors weigh the impact of easing macroeconomic pressures on India’s equity market.