Stock Market Today: Sensex Roars Back With 316-Point Gain, Nifty Tops 25,300 As Crude Oil Prices Cool

Mumbai saw a stock market recovery on Thursday, November 12, as the Sensex and Nifty indices rebounded from early losses to enter positive territory. Falling crude oil prices and continued purchases by foreign institutional investors (FIIs) bolstered investor confidence. The BSE Sensex reached an intraday peak of 82,057.39, climbing 316 points or 0.38%.

The NSE Nifty 50, meanwhile, added 86 points or 0.34% to 25,342 during early trading hours. Both major indices had commenced lower due to cautious market sentiment across Asian regions.

The Sensex had surged to a nine-month high, and analysts pondered the factors driving Dalal Street's impressive 773-point rally. Declining international crude oil prices offered respite to domestic equities, especially since India relies heavily on imported energy. Brent crude oil fell over 1% to $91.51 per barrel, while US West Texas Intermediate (WTI) crude waned nearly 1% to $85.41.

Reduced oil prices may alleviate inflationary pressures and diminish India's import expenses. Foreign institutional investors have played a crucial role in fueling the rally, investing ₹65,735 crore in November alone. Market experts attribute the Nifty's 9.55% gain across seven trading sessions to aggressive foreign investment. Notably, FII buying patterns have reversed, with FIIs now acting as buyers while domestic institutional investors (DIIs) continue to cash in on profits.

Notwithstanding the gains in benchmark indices, sectoral performance exhibited disparity. The Nifty IT sector declined by more than 1%, while the Auto and Healthcare indices experienced selling pressure. However, the Nifty PSU Bank rose by 0.23%, Media indices climbed 0.20%, and Consumer Durables surged 0.14%. Investors are eagerly anticipating India's October Consumer Price Index (CPI) inflation data, slated for release later on Thursday.

This data could provide insights into expectations surrounding the Reserve Bank of India's future interest rate decisions. Meanwhile, Asian markets traded mixed amid volatility in the technology sector, while Wall Street closed higher overnight as concerns over artificial intelligence spending eased.