Sensex ends 2,008 points higher, Nifty above 24,500; Bajaj Finance up 8%

The BSE Sensex closed at 79,310.01, gaining 2,008.61 points or 2.60%. The index opened at 78,910.94 and touched an intraday high of 79,470.03. The NSE Nifty 50 settled at 24,536.60, up 576 points or 2.40%.

In Short

• Banking, automobile shares led the broad market rally
• FIIs bought Rs 7,284 crore, boosting market optimism
• Crude oil prices eased, aiding inflation and external accounts

Markets staged a sharp rally on Thursday, with the Sensex surging over 2,000 points and the Nifty reclaiming the 24,500 mark as buying spread across banking, automobile, financial and realty stocks. Improving global sentiment, hopes of easing geopolitical tensions, renewed foreign investor buying and optimism around corporate earnings lifted Dalal Street.

The BSE Sensex closed at 79,310.01, gaining 2,008.61 points or 2.60%. The index opened at 78,910.94 and touched an intraday high of 79,470.03.

The NSE Nifty 50 settled at 24,536.60, up 576 points or 2.40%. It touched an intraday high of 24,579.90, after opening at 24,378.05.

The rally added to Wednesday's gains, when the Sensex had closed at 77,301.40, while the Nifty settled at 23,960.60.

BANKING, AUTO STOCKS LEAD THE RALLY

Buying was widespread across the Sensex constituents, with banking and automobile stocks among the biggest contributors to the gains.

Bajaj Finance was the top Sensex gainer, rising 7.77%. IndiGo advanced 5.80%, while ICICI Bank gained 5.29%. Maruti Suzuki climbed 5.28%, Mahindra & Mahindra rose 5.15% and Bajaj Finserv added 4.66%.

Asian Paints gained 4.46%, Axis Bank advanced 3.87% and Eternal rose 3.84%. UltraTech Cement was up 3.55%, while Infosys and HDFC Bank gained 3.46% and 3.25%, respectively.

Among other major gainers, SBI rose 2.88%, Sun Pharma gained 2.78%, Larsen & Toubro advanced 2.69%, TCS added 2.38% and Tech Mahindra climbed 2.21%.

However, not all stocks participated in the rally. NTPC was the biggest Sensex loser, falling 1.65%. Bharat Electronics declined 0.57%, Adani Ports fell 0.53%, while Power Grid and ITC slipped 0.38% each. Bharti Airtel was down 0.19%.

FINANCIAL SERVICES, AUTO AND REALTY SHARES OUTPERFORM

Sectoral indices largely ended in positive territory, with financial services and automobile stocks leading the gains.

Nifty Financial Services ex-Bank was the top sectoral performer, rising 4.24%, followed by Nifty Auto, which gained 4.14%. Nifty Financial Services 25/50 advanced 3.97%, while Nifty Realty climbed 3.52%.

Nifty Private Bank gained 3.44%, while Nifty PSU Bank rose 3.13%. Nifty IT advanced 2.42%, and Nifty Consumer Durables gained 2.32%.

Other sectors also ended higher, with Nifty Pharma rising 1%, Nifty Metal gaining 0.87%, Nifty Healthcare advancing 0.70% and Nifty FMCG adding 0.45%.

Nifty Media was among the few sectoral indices to end lower, slipping 0.84%. Nifty Chemicals also declined 0.63%.

The broader market participated in the rally, although gains were relatively stronger in large and mid-cap stocks. Nifty 100 rose 2.22%, Nifty 200 gained 2.15% and Nifty 500 advanced 2%.

Nifty Midcap 100 climbed 1.87%, while Nifty Midcap 50 gained 1.65%. Nifty Smallcap 100 rose 0.56%.

CRUDE OIL, GLOBAL CUES SUPPORT SENTIMENT

Global developments remained an important trigger for the rally. Investors have been assessing the implications of the US midterm election outcome, with hopes that a shift in congressional control could put pressure on President Donald Trump to adopt a more restrained approach towards the Iran conflict and trade policies.

Expectations of a possible de-escalation in the Middle East have helped bring crude oil prices down from the elevated levels seen earlier. At the time of the latest market snapshot, Brent crude was trading at $96.16 per barrel, up 1.63%, while US West Texas Intermediate (WTI) crude was at $88.62, up 0.57%. Despite the recovery in the session, both benchmarks remained below the levels seen earlier in the week.

For India, a sustained moderation in crude prices could ease pressure on the import bill, inflation and the current account deficit. A softer dollar and lower US Treasury yields could also support sentiment towards emerging markets, although the impact will depend on how global conditions evolve.

FIIs' RETURN TO BUYING ADDS TO OPTIMISM

The return of foreign institutional investors (FIIs) to Indian equities has provided another source of support for the market.

FIIs bought equities worth Rs 7,284.03 crore in the cash market on November 4, following net purchases of Rs 6,836.81 crore on November 3. The buying over two consecutive sessions comes after a period of sustained foreign investor selling.

Vinod Nair, Head of Research at Geojit Investments Limited, said the recovery in foreign buying, along with improving corporate earnings, had added substance to the market's optimism.

He also pointed to a healthy improvement in participation beyond the frontline indices, suggesting that the rally was not limited to a handful of heavyweight stocks.

Vinod Nair said the US midterm verdict had given Indian equities fresh momentum, with hopes of a more restrained Washington raising expectations of de-escalation in the Iran conflict and a possible shift in tariff policies.

"As the threat of geopolitical escalation and energy supply shocks faded, crude prices slumped, and a retreat in US Treasury yields and the dollar took further pressure off India's inflation outlook and external accounts," he said.

Nair added that financial and automobile stocks were at the forefront of the rally as investor appetite for risk improved. He also cited the recovery in foreign buying and a healthy run of second-quarter earnings as factors supporting the market.

"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," he said.

However, Nair cautioned that the sustainability of the rally would depend on whether market breadth remained strong and whether hopes of de-escalation translated into concrete progress.

Pranay Aggarwal, Director and CEO of Stoxkart, said the recovery in Indian equities reflected improving investor sentiment, supported by renewed FII participation, easing crude oil prices and buying interest across select sectors.

He pointed out that the relative strength in metal and realty stocks, alongside weakness in some pockets of the market, indicated sector-specific shifts in investor preferences rather than a uniform improvement across all segments.

Aggarwal said softer crude prices and relative stability in the rupee could help moderate imported inflation and provide some relief to corporate input costs. However, he cautioned that the sustainability of the recovery would depend on global economic developments, corporate earnings and domestic liquidity conditions.

Investors will continue to track global interest-rate expectations, crude oil movements, currency trends and earnings performance, he said, adding that market volatility could persist.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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