Bull Run On Dalal Streets As Sensex Jumps Over 2,000 Points, Nifty Tests 24,500

The Indian benchmark indices surged on Thursday as the Sensex jumped over 2,008 points to settle at 79,310 and the Nifty ended 576 points higher to close trade at 24,536 at 3:30 PM.

Indian benchmark indices Sensex and Nifty rallied more than 2.5% on Thursday, opening near three-month highs as a sharp correction in crude oil prices and hopes of an early resolution to the West Asia conflict boosted investor sentiment.

Both indices have gained more than 8% over the past six sessions, marking their longest winning streak in a year. The rally has also helped trim their year-to-date losses to 6.5% for the Nifty and 7.4% for the Sensex.

Investor optimism was fuelled by the US midterm election results, in which voters handed control of Congress to the opposition Democratic Party. The outcome raised expectations that President Donald Trump's ability to escalate the conflict with Iran could be weakened.

Continued foreign fund inflows and a sharp rally in US equity markets also lent support to domestic equities.

At around 1:45 pm, the Sensex was up 2,052.45 points, or 2.66%, at 79,353.85. The Nifty gained 590.60 points, or 2.46%, to trade at 24,551.20, Moneycontrol reported.

Key Factors Behind The Stock Market Rally

1. Crude Oil Prices Extend Decline

Crude oil prices fell for the fourth consecutive session on Thursday amid growing hopes of a diplomatic resolution to the US-Iran conflict following the US midterm election results.

Brent crude, the global oil benchmark, was trading 1.07% lower at USD 93.61 per barrel. US West Texas Intermediate (WTI) crude futures declined USD 1.14, or 1.29%, to USD 86.98.

Both benchmarks had dropped more than 8% in the previous session, settling at their lowest levels since August 31. Crude prices have fallen nearly 16% so far this week as investors reassessed the geopolitical risks that had driven them higher.

Lower oil prices are generally positive for India, which relies heavily on imports to meet its energy requirements. A sustained decline could help reduce the country's import bill, ease inflationary pressures and improve the outlook for corporate earnings.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the improving economic tailwinds were likely to support the market's bullish trend.

"With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10 percent fall in Brent crude to around USD 94 level. This decline is on hopes that a resolution to the US-Iran conflict is likely soon since this conflict and the consequent high crude prices contributed significantly to the Republican rout in the midterms," he said.

2. Foreign Investors Continue Buying Indian Equities

Foreign institutional investors (FIIs) remained net buyers of domestic equities, purchasing shares worth Rs 7,284 crore and extending their buying streak to four consecutive sessions. The purchase was among their biggest single-day investments in India since October 2025.

Continued foreign inflows are viewed as a positive signal for the domestic market, providing liquidity and reflecting improving investor confidence in Indian equities.

Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Reuters that the Democratic Party's victory could influence foreign investors' investment preferences.

"The ‌victory ⁠of Democrats, who are seen as favouring tighter regulations on AI, could propel foreign investors to look beyond this theme in the future and benefit markets like India," he said.

Kant added that the Indian market was showing signs of recovering from two years of underperformance against most global peers, with key factors such as crude oil prices and foreign fund flows turning favourable.

3. Strong Global Market Cues

Positive cues from global markets also supported the domestic rally. In Asia, Shanghai's SSE Composite Index and Hong Kong's Hang Seng Index were trading higher.

US equity markets had ended sharply higher on Wednesday. The Dow Jones Industrial Average surged 3.03%, while the S&P 500 gained 1.58% and the Nasdaq Composite advanced 1.44%.