Sensex Gains 1,600 Points as Oil Slides and Nifty Clears 24,300

At 9:54 a.m. on Thursday, the Sensex was up 1,682 points at 78,983.74, while the Nifty had climbed 480 points to 24,440.70. The rally pushed the Nifty above 24,000 for the first time since September 4. Shares rose broadly, though health care stocks lagged and expected market swings fell sharply. ^2,1

The sharp opening rise followed a steep drop in oil prices and a shift in Washington’s political mood. Brent crude had fallen nearly 9% in the previous session to below $94 a barrel, then dipped further. Investors saw the Democrats’ win of both chambers of the US Congress as a possible check on President Donald Trump, and a reason to expect less conflict with Iran. Wall Street had also rallied. ^4,9

Oil matters especially to India because the country imports much of what it uses. If prices stay lower, they can ease the import bill and inflation pressure, and cut costs for businesses such as airlines. Foreign investors have also returned as buyers, purchasing Indian shares for four straight sessions; reports put their Wednesday buying at ₹7,284 crore. But a one-day jump does not guarantee a lasting recovery, and changes in global policy or conflict could shift the mood. ^10,11,9

The rally reached beyond the biggest companies: mid-cap and small-cap shares rose, while auto, financial, cement and real-estate stocks led gains. Shriram Finance and IndiGo were among the strongest Nifty 50 performers; Apollo Hospitals fell. The next test is whether buyers keep supporting shares after the opening burst, while companies report results. PI Industries offered a warning: its shares plunged after a steep fall in second-quarter profit. ^2,5