The Nifty rose 150 points to close at 23,961 on Wednesday, marking its strongest five-day rally in seven months. Markets got a boost from strong foreign inflows and optimism over a divided US government. Hemant Sood said, "The rally has moved beyond a handful of index heavyweights," showing healthy market participation.
Benchmark closes above 200-DMA for first time since August; broader markets outperform amid strong FII inflows
Markets extended their winning streak to a fifth straight session on Wednesday, with benchmark indices ending at fresh two-month highs amid broad-based buying, strong foreign inflows, and optimism that a divided US government could ease concerns over trade and tariff policies.
Markets extended their winning streak to a fifth straight session on Wednesday, with benchmark indices ending at fresh two-month highs amid broad-based buying, strong foreign inflows, and optimism that a divided US government could temper trade and tariff risks.
The Nifty 50 rose 150 points, or 0.63 per cent, to close at 23,961, marking its first finish above the 200-day exponential moving average (EMA) of 23,904 since August 13. The BSE Sensex gained 384 points, or 0.50 per cent, to settle at 77,301. The Nifty has now rallied more than 5 per cent in the last five sessions, its strongest such advance in seven months, recovering nearly 1,800 points from its recent low of 22,179.
Market participation broadened significantly, with the Nifty Midcap 100 climbing 1.55 per cent and the Nifty Smallcap 100 advancing 2 per cent. BSE market breadth remained firmly positive, with more than two stocks advancing for every stock that declined. The Bank Nifty added 374 points to close at 55,914.
"The rally has moved beyond a handful of index heavyweights, which is the healthier form of participation we had been looking for," said Hemant Sood, Founder and Managing Director, Findoc Group, noting that FPIs have been net buyers for three consecutive sessions.
Sectorally, media emerged as the top gainer, surging 5.2 per cent to hit a fresh 52-week high, followed by realty (2.9 per cent), metals (2.8 per cent) and FMCG (1.5 per cent). IT was the sole sectoral loser, declining 1.5 per cent amid concerns over global technology spending and regulatory uncertainty in the US. BEL, Adani Enterprises, Titan, Jio Financial Services and Max Healthcare led the gainers, while TCS, HCL Technologies and Infosys dragged.
Divided government
Sentiment was aided by developments in the US midterm elections, with projections pointing to a divided government in Washington after Democrats regained control of the Senate and appeared set to secure the House as well.
"The outcome has raised expectations of a more measured approach to trade and tariff policies and could support FII flows into emerging markets," said Vinod Nair, Head of Research, Geojit Investments.
Foreign portfolio investors bought equities worth ₹7,284.03 crore on November 4, while domestic institutional investors sold shares worth ₹3,712.23 crore.
The rupee strengthened for a fourth consecutive session, gaining 10 paise to close at 94.64 against the dollar, supported by a softer dollar index and easing crude oil prices. Gold prices rebounded sharply on short covering, while investors continued to monitor crude oil movements and geopolitical developments in West Asia for further cues.
Looking ahead, investor focus will be on the US administration's stance on West Asia, the Bank of England's policy decision, and US jobless claims data. Domestically, the stronger-than-expected HSBC India Services PMI reading of 55.8 for October added to the positive undertone.