Indian stocks extended their bull run for the sixth consecutive session in Thursday’s trade, driving the benchmark indices to their biggest single-day gains in seven months, as a sharp fall in crude oil prices eased inflation concerns and pressure on the external finances of the oil-importing nation.
The Sensex closed at 79,310, up 2,008 points, or 2.60%, from its previous close of 77,301. The Nifty settled at 24,536, gaining 576 points, or 2.40%, from its Wednesday’s close of 23,960.60.
Similar gains in both indices were last recorded in April. The broader markets also participated in the rally, with the Nifty Midcap 100 index surging 2%, while the Nifty Smallcap 100 index advanced 0.60%.
Among sectoral indices, the Nifty Auto index led the gains with a sharp 4% rise. It was followed by realty, private banks, cement, PSU banks, IT, and consumer durables, all of which closed with gains of more than 2%.
Brent crude held near a two-month low after sliding nearly 9% in the previous session, as investors bet that a Democratic sweep in the US midterm elections could accelerate efforts to end the war in the Middle East.
Democrats won majorities in both the House of Representatives and the Senate and secured victories in key gubernatorial races, including in Texas. The results could give Democrats greater leverage to challenge Trump’s policies.
The US President has pursued business-friendly tax cuts while also imposing tariffs and launching a war with Iran, contributing to inflationary pressures.
Global funds have also turned buyers of Indian equities, pouring more than $3 billion into the market over 10 sessions through Tuesday. The bullish shift has brought India’s $5.1 trillion stock market back onto investors’ radar after rich valuations, record foreign outflows and limited exposure to the artificial intelligence trade had weighed on sentiment.
Analysts see crude, yields and foreign flows supporting market rally
Vinod Nair, Head of Research at Geojit Investments Limited, said the U.S. midterm verdict gave Indian equities fresh momentum, with the rally gathering pace on hopes that a more restrained Washington could pave the way for de-escalation in the Iran conflict and tariff policies.
For now, the stars appear aligned, with crude, yields, earnings and foreign flows all turning in the market’s favour, keeping the near-term bias constructive, Nair said. Yet the rally’s staying power will ultimately depend on whether breadth remains strong and whether the hope of de-escalation translates into concrete progress on the ground.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the US 10-year Treasury yield, hovering near 4.87%, remains elevated by historical standards. However, its recent decline alongside strengthening global equity markets presents a more favourable backdrop for emerging-market flows than a yield retreat driven by risk aversion.
Coupled with softer crude oil prices, the easing in yields is helping alleviate two key external pressures on Indian equity valuations, Radhakrishnan said.
The sustainability of the recovery will now depend on whether foreign investors step up their participation, signalling a more durable reallocation towards Indian equities rather than a rally driven primarily by short covering.
Nifty reclaims key moving averages; 24,775 next target?
Hariselvan Radhakrishnan pointed out that the Nifty closed above its 20, 50, 100 and 200-day SMAs, confirming a significant improvement in the price structure. The next resistance is placed around 24,775, while 24,330 becomes the immediate support.
The six-session rally has strengthened momentum, but the market is now vulnerable to consolidation after gaining sharply in a short period. Sustained trade above 24,330, continued financial-sector leadership and stable crude could carry the Nifty towards 24,775.
A rebound in oil, reversal in foreign flows or failure by Bank Nifty to defend its breakout would indicate that part of the rally was driven by temporary geopolitical relief, Radhakrishnan said.
Vatsal Bhuva, Technical Analyst at LKP Securities, stated the Nifty has strengthened its technical outlook by reclaiming all key moving averages on the daily chart, indicating a bullish trend reversal.
RSI has entered the overbought zone near 75, signalling the possibility of near-term profit booking or consolidation. However, the broader momentum remains positive.
Any dip towards 24,200 could act as immediate support, while 24,000 remains crucial positional support. On the upside, resistance is placed at 24,800 and 25,000. A buy-on-dips strategy remains advisable, Bhuva said.
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