Indian Shares Open Near Three-Month Highs as Oil Prices Slide on US Election Results

Indian equity benchmarks opened near three-month highs on Thursday as oil prices slumped following the Democrats' victory in the U.S. midterm elections.

Market Gains

By 9:18 a.m. IST, the benchmark Nifty 50 rose 1.66% to reach 24,357.3, while the BSE Sensex added 1.83% to touch 78,719.72. Fourteen of the 16 major sectors recorded gains, with the broader small-caps and mid-caps jumping over 1% each. According to Livemint, domestic markets have risen 5.6% across the last five sessions in their longest winning streak in nearly five months.

Oil Prices and Foreign Investment

Brent crude futures dropped 1% to $93.5 per barrel, following an 8.7% slide in the previous session. Meanwhile, provisional data showed foreign investors bought shares worth ₹72.84 billion, or $769.65 million, on Wednesday, marking their fourth straight session of buying.

Context

Falling crude oil prices typically benefit energy-importing economies like India by reducing import bills and easing inflation pressures. The return of foreign institutional investment also helps provide vital liquidity and support to domestic stock valuations.