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.