GIFT Nifty surges 370 pts, signals strong start for Sensex, Nifty as crude oil plunges after US Midterm results

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Indian benchmark indices Sensex and Nifty are likely to open sharply higher on Thursday, with GIFT Nifty trading with strong gains after a nearly 9 percent plunge in crude oil prices and a powerful rally on Wall Street. The Democrats' sweeping victory in the US midterm elections has raised hopes of an early resolution to the Middle East conflict, sending oil prices lower and improving global risk sentiment.

Renewed foreign institutional buying could provide further support to Indian equities, although Asian technology stocks remained under pressure amid concerns over tighter US regulation.

GIFT Nifty was trading at 24,320 around 8 am, up 370 points, or 1.55 percent, signalling a strong opening after Indian equities extended their winning streak to five consecutive sessions on Wednesday. The Sensex gained 383.55 points, or 0.50 percent, to close at 77,301.40, while the Nifty advanced 149.75 points, or 0.63 percent, to 23,960.60. Foreign institutional investors bought equities worth Rs 7,284 crore, extending their buying streak to four sessions, while domestic institutions sold shares worth Rs 3,712 crore for a fourth consecutive session.

Asian markets mixed as chip stocks fall, Hong Kong rallies

Asian equities traded mixed on Thursday as investors assessed the implications of the Democrats' victory in the US midterm elections for technology regulation and the outlook for global energy prices.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

South Korea's technology-heavy Kospi plunged as much as 5.2 percent, with semiconductor heavyweights Samsung Electronics and SK Hynix leading losses. The selloff reflected concerns that a Democrat-controlled US Congress could increase regulatory scrutiny of artificial intelligence and semiconductor companies.

Japan's Nikkei 225 futures declined 0.8 percent, while the Shanghai Composite slipped 0.1 percent. However, lower crude oil prices supported markets with greater exposure to traditional industries. Hong Kong's Hang Seng surged 2.9 percent, while Australia's S&P/ASX 200 gained 1.9 percent.

US equity futures were mildly negative, with S&P 500 futures declining 0.2 percent and Nasdaq 100 futures also trading lower.

Wall Street surges after Democrats sweep US midterm elections

US equities rallied sharply on Wednesday after Democrats secured control of both the House of Representatives and the Senate, providing greater political clarity following a closely watched midterm election. Consumer discretionary, financial and real estate stocks led the advance, while energy shares were among the biggest losers as crude oil prices tumbled.

The Dow Jones Industrial Average surged 3.03 percent, while the S&P 500 jumped 1.58 percent and the Nasdaq Composite gained 1.44 percent. The broader MSCI All-World Index rose 1.38 percent, reflecting improved sentiment across global equity markets.

The election outcome represented a major setback for President Donald Trump, with Democrats securing victories in traditional Republican strongholds. Investors initially assessed the possibility of tighter regulation and increased scrutiny of technology companies, but the reduction in political uncertainty and expectations of a potential easing of geopolitical tensions helped lift equities.

Brent crude plunges nearly 9 percent, slips below $95

Crude oil prices extended their steep decline on Thursday after Brent futures plunged nearly 9 percent in the previous session, amid growing expectations that the Democrats' election victory could accelerate efforts to end the Middle East conflict.

Brent crude fell another 0.5 percent to $94.12 a barrel, after settling at $94.62 on Wednesday following its sharpest decline in the period covered by the supplied market data. West Texas Intermediate declined 0.8 percent to $87.38 a barrel.

The oil selloff followed comments from Senate Minority Leader Chuck Schumer pledging to end the Middle East war, while President Trump acknowledged that the conflict with Iran had contributed to Republican losses in the midterm elections.

Ponmudi R, CEO of Enrich Money, said Indian equity markets could receive a boost from the sharp retreat in international crude oil prices. However, the sustainability of foreign inflows, movements in crude oil prices and the ability of domestic benchmarks to retain their initial gains would be crucial in determining market direction.