Mumbai (Maharashtra) [India], November 5 (ANI): Indian stock markets witnessed a sharp rally on Thursday opening, with the Sensex surging 1,609.54 points, or 2.08 per cent, to close at 78,910.94, while the Nifty 50 jumped 417.45 points, or 1.74 per cent, to settle at 24,378.05, as easing crude oil prices and renewed foreign investor buying lifted market sentiment.

The rally came amid improving global sentiment following the November 2026 US midterm elections, in which the Democratic Party won control of both the Senate and the House of Representatives, delivering a significant political setback to President Donald Trump's administration.

Brent crude prices declined sharply below USD 100 per barrel and were trading at USD 94 per barrel at the time of reporting. The decline offered relief to an oil-import-dependent economy such as India and supported sentiment in domestic equities.

Foreign investors also infused around Rs 17,235 crore into Indian equities in just three trading sessions of November, reflecting a return of overseas institutional buying.

Ponmudi R, CEO of Enrich Money, said, 'The sharp advance reflects improving global risk sentiment, supported by lower crude prices and renewed institutional buying. However, the ability of the benchmarks to sustain these gains beyond the opening trades will be crucial in determining whether the positive momentum can translate into a broader upward move. Crude oil prices have retreated sharply; the decline offers some relief to an oil-import-dependent economy such as India'.

He further added, 'Foreign institutional investors have returned as significant buyers, the revival in overseas fund flows marks an encouraging development for domestic equities, particularly as sustained institutional participation could lend greater depth to the ongoing market recovery'

The rally was broad-based, with the Nifty Midcap 100 rising 1.46 per cent and the Nifty Smallcap 100 gaining 1.49 per cent. The Nifty 100 also advanced 1.78 per cent.

Among sectoral indices, Nifty Private Bank led the gains with a rise of 2.55 per cent, followed by Nifty Realty, which gained 1.92 per cent. Nifty IT advanced 1.72 per cent, Nifty Auto rose 1.66 per cent, Nifty Consumer Durables gained 1.52 per cent, Nifty Media climbed 1.36 per cent, while Nifty FMCG advanced 1.08 per cent.

Meanwhile, precious metals also witnessed gains. Gold rose 1.48 per cent to Rs 1,45,356 per 10 grams of 24-carat purity, while silver gained 1.34 per cent to Rs 1,90,255 per kg.

Anindya Banerjee, Head of Commodity and Currency Research, Kotak NEO said, " In our reading, both metals have now fully corrected the post-Diwali froth of 2025, and after that cleansing they are in a sweet spot from which the next bull run can begin. The one condition is oil: as long as crude does not boil again, bullion can do well. And oil boils only if a fresh round of war breaks out in West Asia."

In Asian markets, the Straits Times rose 0.10 per cent to 5,297, while Hong Kong's Hang Seng advanced 3.36 per cent to 24,723. Japan's Nikkei 225 declined 0.58 per cent to 61,825, Taiwan Weighted fell 1.67 per cent to 42,241, and South Korea's KOSPI dropped around 4 per cent to 5,459. (ANI)