Sensex and Nifty were in green in opening trade on Wednesday, extending the gains of previous four consecutive sessions as investors keenly watched the outcome of the US midterm elections.
At 9:22 am on Wednesday, Sensex was trading at 77,237.91, over 320 points or 0.42 per cent up.
The election outcome could influence the trajectory of the conflicts in the Middle East, global energy prices, the expansion of AI data centres and the US fiscal outlook.
These developments are closely tracked by investors in India, as elevated energy prices and the domestic market’s relatively limited exposure to AI-linked stocks have weighed on equities this year.
The Nifty 50 and BSE Sensex have gained around five per cent over the past four sessions, ending at two-month highs on Tuesday, according to Reuters. The rally has been supported by strong corporate earnings, easing crude oil prices and early signs of a revival in foreign investor inflows.
Foreign investors were net buyers of Indian equities worth ?68.37 billion ($721.66 million) on Tuesday, according to provisional data. They have recorded net purchases in five of the past six trading sessions.
Brent crude futures hovered around $103 per barrel on Wednesday, after touching a nearly four-week low in the previous session, as investors assessed diplomatic efforts to end the wars in Ukraine and Iran.
Signs of a possible slowdown in sustained foreign fund outflows, easing energy prices and optimism over potential tax-policy developments could support domestic market sentiment, said Ponmudi R, CEO of wealth tech platform Enrich Money.
Asian markets fell 0.7 per cent, while US stock futures edged lower as investors assessed whether Democrats could wrest control of Congress from President Donald Trump’s Republicans.