Indian stock markets opened sharply higher on Thursday, November 5.
The rise came as crude oil prices eased and hopes grew for progress in US-Iran talks.
Analytics Insight reported that the Nifty 50 opened 417.45 points higher at 24,378.05.
The Sensex rose 1,609.54 points to 78,910.94.
Later in the morning, the figures were a little different. HDFC Sky reported that at 9.33 am, the Sensex was at 78,569.43.
That was up 1,268.03 points.
Key points
- Brent crude fell more than 18 per cent this week.
- Cheaper oil could ease India's import bill and inflation.
- The rupee opened higher against the US dollar.
- Foreign investors were net buyers on November 4.
Why are oil prices falling?
Brent crude was at 94.09 dollars a barrel on Thursday morning.
That is about 20 per cent below Friday's six-month high of 118 dollars, HDFC Sky reported.
Business Today said Brent futures fell more than 18 per cent this week.
The fall followed easing worries about geopolitical risks.
US midterm election results also shaped the mood. Democrats gained control of both the Senate and the House.
Investors hope this could push the US to end its war with Iran.
So why does this matter for India?
India imports a large amount of crude oil. Cheaper oil can reduce its import bill.
It can also ease inflation and reduce dollar demand from oil companies.
The rupee opened 29 paise higher at 94.35 per dollar.
Amit Pabari of CR Forex Advisors said the RBI's currency measures are showing results.
Corporate forward dollar purchases fell 35 per cent in October, to 49.5 billion dollars.
That is an eight-month low, according to Pabari.
Foreign investors have returned as net buyers after heavy withdrawals in September and October.
They bought shares worth Rs 7,284 crore on November 4. Domestic investors sold Rs 3,712 crore.
Graphic: News Anek, from the facts in this report
What happens next for the markets?
Shrikant Chouhan of Kotak Neo said the short-term view is positive. But he warned of temporary overbought conditions.
He expects range-bound trade at higher levels.
For the Sensex, 78,000 to 77,500 is seen as key support. 79,000 is the key resistance.
For the Nifty, 24,300 to 24,400 is the key resistance zone.
The sources count the rally differently. Analytics Insight calls it the fifth straight session.
HDFC Sky says the Sensex gains came over four sessions.
Analytics Insight says it does not give financial advice. This story is for information only.
