Stock Market Today: The Indian stock market extended its sharp recovery on Thursday, November 5, as a steep decline in crude oil prices and improving global sentiment triggered a fresh wave of buying on Dalal Street. Investors cheered Democrats' victory in the US midterm elections, betting that the outcome could hasten the end of the US-Israeli war on Iran and ease geopolitical risks that have kept energy markets volatile. The optimism sent Brent crude prices to a two-month low, providing additional relief to oil-importing economies such as India.
The Sensex surged 2%, or 1,621 points, to an intraday high of 78,922.44, while the Nifty 50 advanced 431 points, or 1.8%, to touch 24,391.95.
Indian equity benchmarks extended their winning streak to a sixth consecutive session, gaining around 5.6% over the past five trading sessions.
"With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10% fall in Brent crude to around $94 level. This decline is on hopes that a resolution to the US-Iran conflict is likely soon since this conflict and the consequent high crude prices contributed significantly to the Republican rout in the mid-terms," said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
After the initial reaction to the US election results weakens, there will be concerns surrounding prolonged political conflict in the US, since Trump being what he is, is likely to turn Mr Veto rather than lame duck president, he added.