Sensex Surges Over 1,600 Points, Nifty Jumps 432 as Crude Oil Prices Crash

The rally came after the results of the US midterm elections dealt a major setback to President Donald Trump’s Republican Party. The Democratic Party secured a majority in both the House of Representatives and the Senate, while falling crude oil prices provided additional support to global equity markets. Positive international cues further strengthened investor sentiment, helping Indian benchmark indices begin the session with significant gains.

The 30-share BSE Sensex opened sharply higher compared with its previous closing level of 77,301. Within seconds of the opening bell, the index jumped 1,621 points to reach 78,922. The National Stock Exchange’s 50-share Nifty also recorded a strong rally. Against Wednesday’s closing level of 23,960, the index opened higher and climbed 432 points to reach 24,392.

The market rally coincided with celebrations across global financial markets following the Republican Party’s defeat in the US midterm elections. The Democratic Party secured a majority in both chambers of Congress, delivering a significant electoral setback to Trump. Elections were held for all 435 seats in the House of Representatives. According to the results, the Democrats won 228 seats, while the Republicans secured 139 seats. A party needs 218 seats to achieve a majority in the House.

Following the election results, the US stock market also witnessed a strong rally, with the Dow Jones recording significant gains.

Meanwhile, international crude oil prices suffered a sharp decline. As Trump’s Republican Party faced defeat in the midterm elections, crude oil prices crashed in the international market, easing concerns that had been weighing on stock market sentiment in India and other countries for an extended period.

At the time of writing, Brent crude prices had fallen by approximately 10 per cent, dropping below $90 per barrel. The sharp decline in oil prices raised expectations of reduced inflationary pressure, particularly in countries heavily dependent on oil imports. India is also among the countries that could benefit from lower crude oil prices.

Asian markets also responded positively to the developments in the United States and the decline in crude oil prices. Gift Nifty, considered a key indicator of the expected direction of the Sensex and Nifty, witnessed a strong upward movement. During early trading, Gift Nifty was up 324 points. Hong Kong and UK stock markets also recorded substantial gains.

Amid the broader market rally, several large-cap stocks on the BSE traded sharply higher. IndiGo shares led the gains among the major stocks, rising 5 per cent. Bajaj Finance advanced 4.60 per cent, while Asian Paints gained 4.20 per cent. Maruti shares climbed 3.70 per cent, and Mahindra & Mahindra (M&M) rose 3.49 per cent.

Bajaj Finserv shares gained 3 per cent, while Infosys advanced 2.80 per cent. Larsen & Toubro (L&T) rose 2.70 per cent, HDFC Bank gained 2.65 per cent, and TCS shares traded 2.50 per cent higher.

The sharp opening gains in the Sensex and Nifty reflected the positive response of Indian equities to the US election outcome, falling international crude oil prices and stronger global market cues. With Brent crude slipping below $90 per barrel, investors also focused on the potential relief for oil-importing economies such as India.