Sensex jumps over 1,190 points, Nifty reclaims 25,350; IndiGo, M&M shares among top gainers

Indian stock markets opened Wednesday’s session on a strong note, with the Sensex and Nifty extending their gains in morning trade. The rally was broad-based, with banking and automobile stocks leading the advance. The sharp move also added nearly ₹4.5 lakh crore to the market capitalisation of BSE-listed companies within minutes of opening.

At the time of reporting, the BSE Sensex was trading at 82,299.12, up 1,192.47 points or 1.47%. The NSE Nifty 50 was at 25,357, gaining 312.35 points or 1.25%.

The broader market also saw strong buying interest. Of the 3,463 stocks traded on the NSE, 2,620 were in the green, 743 were trading lower and 100 remained unchanged.

What is driving the stock market rally?

A combination of easing crude oil prices and renewed foreign investor buying has helped improve sentiment towards Indian equities. The recent recovery comes after a period of sustained selling by foreign investors in October.

Crude prices have come off their recent levels, offering some relief to India, which depends heavily on imports to meet its energy requirements. Brent crude was trading around $91-92 per barrel, while US benchmark WTI was hovering near $86 per barrel. Lower oil prices could help contain India’s import bill and ease concerns around imported inflation and pressure on the country’s external balances.

Foreign institutional investors (FIIs) have also turned net buyers after pulling money out of Indian equities through much of October. Foreign investors have made net purchases of around ₹53,170 crore so far in November. 

The Indian rupee’s recent strengthening has added to the positive mood. However, global cues remained mixed in early trade. Japan’s Nikkei 225 was up more than 0.10%, while South Korea’s Kospi was trading over 0.40% lower. The US Nasdaq was trading 0.74% lower due to pressure in AI stocks, with the fall led by Nvidia, which declined more than 6%. 

Which stocks are leading the gains?

IndiGo was the biggest gainer among the stocks listed here, rising 4.84% to ₹5,693. Mahindra & Mahindra advanced 3.90% to ₹3,419, while Trent gained 2.82% to ₹3,207.30.

Banking stocks also saw strong buying. State Bank of India rose 2.71% to ₹1,070.25, while Axis Bank gained 2.43% to ₹1,342.60.

There were few stocks trading in the red. Dr Reddy’s Laboratories fell 0.58%, Apollo Hospitals declined 0.50%, and Titan lost 0.47%. Sun Pharmaceutical Industries slipped 0.40%, while Hindalco Industries was down 0.17%.

The buying was particularly strong in banking and automobile stocks. The Nifty PSU Bank index climbed 3.19%, making it the best-performing sectoral index at the time of reporting. The Nifty Auto index followed with a gain of 1.72%.

The Nifty Private Bank index rose 1.70%, while the Nifty Financial Services index advanced 1.47%. Consumer Durables and Oil & Gas indices gained 1.35% and 1.18%, respectively. FMCG and Metal stocks also traded higher, with their respective indices rising 0.86% and 0.83%.

IT stocks saw relatively muted movement, with the Nifty IT index up just 0.08%. Healthcare and pharmaceutical stocks were among the few sectors under pressure. The Nifty Healthcare index fell 0.59%, while the Nifty Pharma index declined 0.54%. The Realty index was marginally lower by 0.06%.

What analysts have to say

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said the easing of crude oil prices and a turnaround in foreign portfolio flows were providing support to domestic equities.

“WTI crude has continued to retreat, trading around $86 per barrel, while Brent has eased to the $91–92 range. The decline in international oil prices offers some respite from concerns over elevated energy costs, imported inflation and pressure on India’s external balances,” he said.

On foreign investor activity, Ponmudi pointed to a shift from the sustained selling seen in October to consecutive sessions of net buying. “This renewed foreign investor participation has helped reinforce the recent market recovery, improving risk appetite and lending greater confidence to the domestic investment outlook,” he said.

He also noted that Asian markets were trading on a mixed note, with Japan’s Nikkei 225 edging up more than 0.10%, while South Korea’s Kospi was down over 0.40%.