Indian Stock Market Surges Over 2,000 Points as Trump’s Party Faces Midterm Defeat

The BSE Sensex surged 2,008.61 points to close at 79,310.01, while the NSE Nifty climbed 576 points to settle at 24,536.60. Strong buying was visible across sectors throughout the trading session, with both benchmark indices recording significant gains during intraday trading.

At 1:52 PM, the Sensex had surged more than 2,100 points to cross the 79,400 mark, while the Nifty had gained 600 points to move above 24,500. Sectoral indices also recorded broad-based gains. Nifty Bank advanced 3.13%, Nifty Financial Services gained 3.85%, Nifty Auto rose 4.10%, Nifty IT climbed 2.35%, PSU Bank increased 2.91%, Private Bank advanced 3.14%, Realty gained 3.37%, Consumer Durables rose 2.10% and Cement stocks climbed 3.45%.

At 1:42 PM, the Sensex was trading more than 1,890 points higher at 79,198, while the Nifty had gained 545 points to cross 24,500.

The rally had gathered further momentum by 1:00 PM, when the Sensex crossed 79,000 to reach 79,070, gaining more than 1,700 points. The Nifty had climbed over 500 points to touch 24,468. The total market capitalisation of companies listed on the BSE also crossed Rs 500 lakh crore. Bajaj Finance shares gained more than 7%, while IndiGo and Maruti advanced over 5%. Asian Paints, Bajaj Finserv and Mahindra & Mahindra were trading with gains of more than 4%.

At 11:50 AM, the Sensex was trading 1,557 points higher at 78,858, after crossing the 79,000 mark earlier. The Nifty had gained 440 points to trade at 23,400. A total of 2,716 stocks on the NSE were trading in positive territory, including 127 stocks that had hit their upper circuits.

At 10:00 AM, the Sensex had surged 1,701 points to cross 79,000, while the Nifty gained 480 points to reach 23,441. All Sensex constituents except Airtel and NTPC were trading in the green. The BSE-listed companies' combined market capitalisation had crossed Rs 500 lakh crore. Bajaj Finance and Maruti gained more than 5%, while IndiGo advanced 4.99%. Asian Paints and Mahindra & Mahindra were also trading with gains exceeding 4%.

The rally was evident from the opening bell. At 9:20 AM, Maruti, Asian Paints and Bajaj Finance were among the prominent gainers, with their shares rising more than 4%. IndiGo led the Sensex gainers with a 5.29% jump. All Sensex stocks except Airtel were trading in positive territory. The Sensex opened 1,609 points higher at 78,911, generating gains of Rs 7 lakh crore for investors within minutes. The market capitalisation of BSE-listed companies crossed Rs 500 lakh crore.

At 9:15 AM, the Nifty 50 opened more than 400 points higher, crossing the 24,300 mark. The 30-share Sensex also began Thursday's trading session with a jump of 1,609 points at 78,911.

The strong opening followed the Democratic Party's victory in both chambers of the US Congress in the midterm elections. The outcome was viewed as a setback for President Donald Trump and raised expectations of a possible improvement in global trade and geopolitical conditions. Crude oil prices had also fallen to a two-month low, adding to the positive sentiment in the Indian market.

Before the opening bell, Gift Nifty was trading at 24,295.5 at 8:01 AM, indicating a positive opening for the Nifty 50. The Nifty had closed at 23,960 on Wednesday. Gift Nifty subsequently moved close to 24,300, gaining around 350 points or approximately 1.5%, signalling the possibility of a significant gap-up opening in the domestic market.

Foreign investor activity also provided support. On Wednesday, foreign investors purchased Indian equities worth Rs 72.84 billion. This marked their fourth consecutive trading session of net buying, indicating a possible return to Indian equities following substantial selling earlier this year.

The decline in crude oil prices was another important factor supporting market sentiment. Brent crude fell 1% to $93.5 per barrel after recording a steep 10% decline in the previous session. Lower oil prices are beneficial for oil-importing countries such as India, as they help ease pressure on inflation and the trade deficit.

Developments in the US midterm elections also influenced global markets. Democrats secured control of both chambers of Congress, triggering gains in American and European equities on Wednesday. Their victory was considered a major political setback for President Donald Trump. His administration's global tariff policies and the conflict in the Middle East had also weighed on the performance of Indian equities this year.

The domestic market had already been showing signs of recovery before Thursday's rally. The Nifty 50 and BSE Sensex had gained 5.6% over the previous five trading sessions, marking their longest consecutive winning streak in nearly five months. Foreign investor purchases, softer crude oil prices and strong corporate earnings supported the recovery.

Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the gradual decline in oil prices had gathered significant momentum. He added that if the downward trend continued, it could improve India's near-term macroeconomic outlook and earnings estimates.

Global markets also reacted positively to the US election outcome. On Wall Street, the Dow Jones Industrial Average surged 3%, gaining more than 1,500 points to close above 53,000. This was the first time it had crossed that level since September 8. The rise also marked its biggest single-day gain since April 9 last year.

Nasdaq futures advanced 1.6%. After initially falling more than 650 points following the election results, the Nasdaq recovered its losses and eventually closed higher. The S&P 500 also gained more than 1.5%.

Asian markets, however, recorded a mixed performance on Thursday. South Korea's KOSPI triggered a sell-side circuit breaker during early trading after falling more than 4% and dropping below 5,400. Concerns over regulations affecting AI data centre construction following the US election contributed to the decline. According to the Korea Exchange, the circuit breaker was triggered at 10:16 AM on November 5, South Korean time.

Japan's Nikkei 225 initially gained 0.5% but later declined 1.24% to 61,417. Taiwan's TAIEX was trading 1.81% lower at 42,171.

On Wednesday, Indian equities had extended their gains for the fifth consecutive session. Buying in heavyweight financial, FMCG and automobile stocks, along with foreign fund inflows and declining crude oil prices, supported the market. The Sensex rose 383 points, or 0.50%, to close at 77,301, its highest closing level in more than two months.

Thursday's rally marked a significant extension of the domestic market's recovery, with benchmark indices, sectoral stocks and the broader market recording widespread gains.