Nifty Surges Past 24,500 as Sensex Gains 2,070 Points Amid Crude Oil Drop

Indian equity markets experienced a robust rally on Thursday, posting their strongest gains in several months. By early afternoon, the Sensex had soared by 2,070 points, or 2.68 percent, reaching 79,371.40 points. The Nifty 50 index also climbed significantly, adding 596.20 points (2.49 percent) to settle at 24,556.80 by 2 pm. This upward momentum was largely fueled by a sharp decline in global crude oil prices and sustained buying from foreign institutional investors (FIIs).

The previous trading day closed with the Sensex at 77,301.40, and it began Thursday’s session at 78,910.94. The Nifty opened at 24,378.05 after closing Wednesday at 23,960.60. Notably, the Nifty reclaimed its 20-, 50-, 100-, and 200-day exponential moving averages in a single session, signaling strong technical support.

Market breadth was positive but varied among the 4,543 stocks traded on the Bombay Stock Exchange (BSE). A total of 3,032 shares advanced, 1,324 declined, and 187 remained unchanged. Additionally, 117 stocks hit their 52-week highs while 60 touched their lows. Trading activity showed 213 stocks locked in upper circuits and 152 in lower circuits, indicating a generally bullish trend with pockets of profit booking.

Leading the charge on the Nifty 50 was Bajaj Finance, which surged 7.26 percent to ₹1,066.20 on heavy volumes of 227.15 lakh shares worth ₹2,380.71 crore. Shriram Finance followed with a 6.77 percent increase to ₹970.25, while Tata Motors’ preferred variant (TMPV) climbed 6.09 percent to ₹295.45. Other notable gainers included Mahindra & Mahindra, which rose 5.89 percent to ₹3,136.40 on a turnover of ₹1,697.68 crore, and IndiGo, which advanced 5.86 percent to ₹5,442.20.

On the downside, Apollo Hospitals declined 2.70 percent to ₹8,367, marking the largest drop among Nifty 50 stocks. ONGC slipped 2.20 percent to ₹229.84 on volumes of 129.35 lakh shares valued at ₹297.74 crore. NTPC, Coal India, and Dr. Reddy’s Laboratories also posted losses ranging from 1.04 percent to 1.34 percent.

The key catalyst driving the market rally was the steep fall in crude oil prices. Brent crude closed 8.7 percent lower at $94.62 on Wednesday, continuing its downward trend after US Vice President JD Vance linked Republican midterm losses to the ongoing Iran conflict, raising hopes of diplomatic resolution. West Texas Intermediate (WTI) crude was trading near $86.81, down 1.41 percent, marking four consecutive sessions of decline. On the domestic front, MCX crude oil prices were around ₹8,210 per barrel, down 1.84 percent, with support levels expected between ₹7,700 and ₹7,800.

Rajesh Singla, CEO of Alpha AMC, commented that the market’s strength was grounded more in domestic economic fundamentals rather than international political developments. He highlighted foreign institutional investor flows, crude oil prices, currency fluctuations, and corporate earnings as the main factors influencing market direction. Singla advised investors to focus on these fundamentals over short-term political events.

Ponmudi R, CEO of Enrich Money, observed that current crude prices in the $86–87 range and the Indian rupee’s appreciation to around 94.4 against the US dollar were creating a favorable macroeconomic backdrop for Indian stocks. The USD/INR exchange rate was at 94.49, down 0.15 percent, marking the rupee’s fourth straight day of gains supported by a dollar index near a one-month low of about 101.5.

Foreign investors have been net buyers for four consecutive days, purchasing shares worth ₹7,284 crore in the last session alone. Their net inflows for November have reached approximately ₹17,236 crore in just the first three trading days. Domestic institutional investors, however, have been net sellers, offloading ₹3,712 crore over the same period.

Singla also pointed out the ongoing political uncertainty in Israel as a secondary risk. The recent election resulted in a fragmented parliament with no clear majority, which could prolong coalition talks. He noted that this development primarily affects India through crude oil prices and regional sentiment but should not undermine the domestic earnings outlook or foreign portfolio investment trends.

In the commodities market, gold prices rose, with COMEX gold up 1.83 percent to roughly $4,147 per ounce. MCX gold traded higher at ₹145,680, up 1.71 percent, though gains were somewhat offset by rupee strength. Silver prices also saw gains, with COMEX silver up 1.75 percent to $53.20 and MCX silver rising 1.55 percent to ₹190,640. The gold-silver ratio tightened to 77.2 from 78.8.

The Bank Nifty index opened sharply higher at around 57,103 after closing Wednesday at 55,913.60. The index traded above all key moving averages, with immediate resistance levels identified between 57,100 and 57,200, and support near 56,200 to 56,000.

Regarding the political environment in the United States, Singla noted that the recent Democratic sweep has created a divided government scenario, which could result in continued policy uncertainty. This poses challenges for Indian exporters and the IT sector, reflected in IT stocks being among the session’s weakest performers for the second day in a row.

Thursday’s market surge illustrates the strong influence of global crude dynamics and foreign investment flows on Indian equity markets. Investors will likely continue to monitor these factors closely, along with domestic corporate earnings and currency movements, as they weigh market risks and opportunities in the coming weeks.