Indian shares set to open higher as oil hits 2-month low after US Democratic win

Indian shares are anticipated to open on a bullish note on Thursday, following a sharp decline in crude oil prices to a two-month low. Investors are speculating that Democrats' victory in the US midterm elections could prompt the conclusion of the US-Israeli conflict with Iran. The Nifty 50 futures were trading at 24,295.5 at 8:01 a.m. IST, signaling a promising opening for the benchmark Nifty 50 index, which closed at 23,960.6 the previous day.

Foreign investors injected 72.84 billion rupees ($769.65 million) into Indian shares on Wednesday, marking their fourth consecutive buying session, indicating a potential return to the market after a significant sell-off this year. Brent crude futures declined by 1%, reaching $93.5 per barrel, after sliding by 8.7% in the previous session.

US and European stocks experienced a rally on Wednesday, driven by Democrats' triumph in both chambers of Congress during the US midterm elections, which brought about greater political clarity and alleviated market uncertainty that has plagued the markets. The Democrats' victory is perceived as a sharp rebuke to President Donald Trump, whose administration's global tariff policies and decision to engage in war in the Middle East contributed to the underperformance of Indian markets this year.

Domestic markets are now exhibiting signs of recovery, with the Nifty 50 and BSE Sensex indices rising by 5.6% over the past five sessions, their longest winning streak in nearly five months. This resurgence is attributed to foreign investments, decreasing oil prices, and robust earnings reports. Hariselvan Radhakrishnan, the founder and CEO of research advisory firm HST Wealth, remarked that, unlike the earlier gradual decline in oil prices, the magnitude of this recent move could substantially enhance India's near-term macroeconomic and earnings outlook if sustained.