Mumbai (Maharashtra) [India], November 5 (ANI): Indian equity benchmarks Sensex and Nifty 50 are now 6,849 points and 1,822 points, respectively, away from reclaiming their previous lifetime highs, as a sharp recovery in domestic equities, declining crude oil prices and improving foreign investor sentiment raise expectations of fresh record levels.

The BSE Sensex closed at 79,310.01 on Thursday, surging 2,008.61 points or 2.60 per cent, while the NSE Nifty 50 settled at 24,536.60, gaining 576 points or 2.40 per cent.

The Sensex is currently 6,849.01 points, or approximately 7.95 per cent, below its lifetime high of 86,159.02, recorded on December 1, 2025. Similarly, the Nifty 50 is 1,821.65 points, or approximately 6.91 per cent, below its previous record of 26,358.25, achieved on January 5, 2026.

Speaking to ANI, Jay Thakkar, Head of Derivatives and Quant Research and Vice President at ICICIDirect, expressed confidence that both benchmark indices could reclaim their previous records and scale fresh lifetime highs.

'Your question is whether the Nifty or Sensex, or both, will hit lifetime highs going forward. The answer is definitely yes,' Thakkar said.

He attributed the improving market outlook to declining crude oil prices, renewed foreign institutional investor (FII) buying and a significant reduction in bearish positions in index futures.

'Brent crude has declined from its recent highs of USD 117-118 per barrel to well below USD 100, currently hovering around USD 94-95 per barrel. This is the first sign of recovery in the market,' he said.

Crude oil prices continued their decline for the fourth consecutive day on Thursday, November 5, following a steep 9 per cent plunge in the previous trading session.

The decline came as global markets reacted to the losses suffered by US President Donald Trump's Republican Party in this week's Congressional elections.

The electoral setback increased speculation that growing political pressure within the Republican Party could compel the Trump administration to seek a negotiated settlement to end the ongoing conflict with Iran.

Thakkar said improving geopolitical expectations, declining US bond yields and falling crude prices could support a gradual recovery in Indian equities.

He also highlighted a significant reduction in FIIs' short positions in index futures, which declined from 3.10 lakh contracts to 1.86 lakh contracts as of November 4, representing a reduction of approximately 1.24 lakh contracts.

'FIIs have drastically reduced their short positions in index futures. These positions were as high as 3.10 lakh contracts but declined to 1.86 lakh contracts as of November 4. This is also a positive indicator,' he said.

On the sectoral front, Thakkar said the recovery in information technology stocks, sustained strength in pharmaceuticals and improving sentiment in automobiles could provide further support to the benchmark indices.

He added that falling crude oil prices could benefit aviation companies, cement manufacturers, tyre companies and automobile ancillary businesses.

The broader market is also witnessing short covering in realty, defence and capital market stocks, while strong mutual fund inflows continue to support domestic equities.

Thakkar further indicated that declining crude prices could reduce pressure on the Reserve Bank of India (RBI) to pursue aggressive monetary tightening, providing another potential positive trigger for equities.

'Markets always move ahead of actual developments. They anticipate future events rather than waiting for official confirmation,' he said.

On the timeline for fresh record highs, Thakkar said it was difficult to predict whether the benchmarks would achieve the milestone within one, two or three months, but maintained that the probability remained high.

'If you ask me whether this will happen in one month, two months or three months, it is difficult to predict the exact timeline. However, I believe it could happen sooner rather than later,' he said.

He added that achieving fresh lifetime highs within the current financial year would be a positive development for Indian equity markets. (ANI)