Sensex Rockets 2,000+ Points, Nifty Crosses 24,500 in Massive Rally
Indian stock markets rally sharply as Sensex surges 2,000 points and Nifty tops 24,500, driven by lower oil prices and US election cues.
The Indian stock market witnessed a powerhouse performance on Thursday, as a wave of optimism swept through Dalal Street. In a dramatic surge, the Indian stock market surge saw the Sensex leap by over 2,000 points, while the Nifty decisively breached the 24,500 threshold. This bullish momentum was fueled by a combination of easing global crude oil prices and positive sentiment following the Democrats' gains in the US midterm elections.
The Numbers: A Day of Green
The benchmark indices closed with significant gains, reflecting a broad-based recovery across various sectors:
- Sensex: Closed at 79,310.01, marking a massive jump of 2,008.61 points, or 2.60 per cent, from its previous close of 77,301.40.
- Nifty: Settled at 24,536.60, rising by 576.00 points, or 2.40 per cent, compared to the previous close of 23,960.60.
Sectoral Performance and Top Gainers
The rally was not limited to a few stocks but was spread across the board. The Nifty 100 emerged as the top gainer, surging by 2.23 per cent. Financials led the charge, with Nifty Financial Services and Nifty Bank jumping over 4 per cent and 3 per cent, respectively.
Stocks in the Green
A long list of heavyweights contributed to the rally. On the National Stock Exchange (NSE), top gainers included Bajaj Finance, Shriram Finance, Indi Go, Maruti, M&M, ICICI Bank, BSE, Bajaj Finserv, Asian Paint, Axis Bank, Eicher Motor, Infosys, HDFC Bank, TCS, SBIN, Grasim, LT, Tech Mahindra, Tata Steel, JSW Steel, Bajaj-Auto, Titan, and Hindalco.
Similarly, the BSE saw strong performance from Reliance, Kotak Bank, Sun Pharma, and Hindustan Unilever, alongside many of the aforementioned leaders.
The Laggards
While most of the market soared, a few stocks faced a downturn. The top losers on the NSE included Apollo Hospital, ONGC, NTPC, BEL, Adani Airports, Cipla, and Trent. On the BSE, ITC, Power Grid, and Bharti Airtel were among the laggards, while correction was noted in the Nifty chemicals and media indices.
What Drove the Rally?
Market experts attribute this sharp climb to several macro-economic factors. A primary driver was the cooling of commodity prices; at the time of reporting, Brent crude was trading around USD 96.02 per barrel, and crude oil was at approximately USD 88.56 per barrel.
"Today's rally is encouraging because it is being supported by multiple factors rather than just short covering. Lower crude prices, improving foreign investor flows and expectations of reduced geopolitical uncertainty are helping sentiment," noted market analyst Vipin Dixena.
Dixena further highlighted that the first-half FY27 earnings performance indicates improving visibility for several large-cap sectors, creating a positive macro environment for India.
The Road Ahead: Technical Outlook
Ajit Mishra, SVP of Research at Religare Broking, pointed out that the strength in heavyweight stocks has helped the Nifty recover losses from the past three months. This puts the index on a trajectory to potentially retest its August high of approximately 24,800.
From a technical standpoint, the Nifty has moved decisively above the 24,200 mark. Analysts suggest that the 24,100–24,200 zone now serves as a critical support area. While a sustained move above 24,500 could extend the recovery, experts warn investors to be mindful of potential intermittent profit booking following such a sharp rally.