Diwali cheers: Sensex jumps over 2,000 points, Nifty tops 24,500

Mumbai: Indian equity benchmarks surged on Thursday, extending their winning streak to a fifth consecutive session, as a sharp decline in crude oil prices boosted investor sentiment amid expectations of a quicker resolution to the West Asia conflict following the Democrats’ victory in the US midterm elections.

The Sensex soared 2,008.61 points, or 2.6 per cent, to close at 79,310.01, while the Nifty advanced 576 points, or 2.4 per cent, to settle at 24,536.60, marking one of the strongest single-day gains in recent months.

Commenting on Nifty technical outlook, experts said that the index has strengthened its technical outlook by reclaiming all key moving averages on the daily chart, indicating a bullish trend reversal.

"Any dip towards 24,200 could act as immediate support, while 24,000 remains crucial positional support. On the upside, resistance is placed at 24,800 and 25,000. A buy-on-dips strategy remains advisable," market experts stated.

The broad-based rally added substantial wealth to investors, with the market capitalisation of all BSE-listed companies increasing by Rs 7.03 trillion to Rs 501.45 trillion from Rs 494.42 trillion in the previous session.

The upbeat sentiment spilled over to the broader market as well. The Nifty MidCap 100 index gained 1.87 per cent, while the Nifty SmallCap 100 rose 0.56 per cent.

Sectorally, auto, real estate and financial stocks led the advance. The Nifty Auto, Nifty Realty, Nifty Financial Services and Nifty Private Bank indices emerged as the top performers as investors rotated into cyclical and rate-sensitive sectors.

In contrast, the Nifty Chemical and Nifty Media indices lagged the broader market.

Despite the strong rally, a few stocks bucked the trend. Bajaj Finance, Shriram Finance and Mahindra & Mahindra ended among the top losers in the Nifty pack.

Experts attributed the rally to easing concerns over energy prices and geopolitical risks, with lower crude oil prices expected to improve India's inflation outlook and reduce pressure on corporate margins and the country's import bill.

"For now, the stars appear aligned, with crude, yields, earnings and foreign flows all turning in the market’s favour, keeping the near-term bias constructive. Yet the rally’s staying power will ultimately depend on whether breadth remains strong and whether the hope of de-escalation translates into concrete progress on the ground," market watchers noted.