US Midterm Election Results Impact: Street cheers Trump's loss! Sensex jumps 1,600 points, Nifty at 24,300 - Top factors
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.
The outcome of the US midterm elections emerged as a major trigger for the improvement in global market sentiment. Democrats seized control of both chambers of Congress, providing greater political clarity and reducing uncertainty that had weighed on financial markets.
Investors are betting that the election outcome could hasten the end of the US-Israeli war on Iran, potentially easing geopolitical tensions and reducing the risk of further disruptions to global energy supplies.
The possibility of de-escalation in the Middle East has been closely watched by financial markets, given the conflict's implications for crude oil prices, global inflation and economic stability.
US and European stock markets rallied on Wednesday following the election results, reflecting improved investor confidence and a greater appetite for riskier assets. The positive sentiment subsequently supported Asian equities, including Indian benchmarks.
Asian shares mostly gained on Thursday after U.S. stocks rallied following the midterm election, with the Dow Jones Industrial Average jumping more than 3% after President Donald Trump’s party lost its sole control of Washington.
The sharp correction in international crude oil prices provided another major boost to Indian equities.
Brent crude futures fell 1% to $93.5 per barrel on Thursday, extending an 8.7% decline in the previous trading session. The fall took oil prices to their lowest level in nearly two months as investors assessed the possibility of easing geopolitical tensions following the US election outcome.
Lower crude oil prices are particularly beneficial for India, which imports a significant portion of its crude oil requirements. A sustained decline in international oil prices can help reduce the country's import bill, ease inflationary pressures and improve its current account position.
The return of foreign institutional investors (FIIs) has provided another important catalyst for the ongoing market recovery.
According to provisional exchange data, foreign investors purchased Indian shares worth ₹72.84 billion ($769.65 million) on Wednesday. This marked their fourth consecutive session of net buying, suggesting that overseas investors may be gradually returning to Indian equities after a significant sell-off earlier this year.
Sustained foreign investor outflows had been one of the major headwinds for domestic equities, putting pressure on benchmark indices and limiting recovery attempts.
“The decline in crude prices is happening when the Indian economy is showing great resilience and corporate earnings are showing significant improvement. This, and the hope that LTCGs tax may be abolished in the coming Budget, has completely changed the FII’s stance towards India. During the last four trading days, FIIs bought equities for ₹20834 crores in the cash market and, importantly, the buying volume is increasing steadily. There is more short-covering to happen in large-caps and, therefore, expect further rebound in large-caps led by the banking/financial majors. At higher levels, profit booking may emerge as DIIs are showing an inclination to sell on rallies,” noted Vijayakumar.
The ongoing September-quarter earnings season has also contributed to the improvement in investor confidence.
Investors have been assessing corporate earnings to determine whether companies can sustain profitability amid geopolitical uncertainties, fluctuating commodity prices and broader economic challenges.
Encouraging earnings performances across select companies and sectors have helped support buying interest in domestic equities, providing an additional cushion to the market recovery.
The combination of improving earnings visibility and easing input cost pressures has also strengthened expectations that corporate profitability could remain resilient.
For investors, the earnings outlook remains particularly important because sustained earnings growth is necessary to support stock valuations and extend the market recovery.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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HomeMarketsStock MarketsUS Midterm Election Results Impact: Street cheers Trump's loss! Sensex jumps 1,600 points, Nifty at 24,300 - Top factors
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