Market wrap, Nov 5: Indices post biggest rally in 7 months; NIFTY50 ends at 24,536, m-cap surges ₹8 lakh crore to ₹497L crore

The Indian stock market posted its biggest single-day rally in seven months on Thursday, November 5, extending its winning streak to six consecutive sessions.

The gains came amid a sharp correction in global crude oil prices, a pullback in bond yields, strong foreign institutional investor (FII) buying and improving sentiment around the West Asia conflict.

The 50-share index climbed to its highest level since August 11. The index has remained flat over the past three months but gained 7% in the last one week.

Global crude oil benchmark, Brent crude prices crashed 11% to hit a low of $93.50 per barrel (bbl) on Thursday from the intraday high levels of $104.96 per bbl on Wednesday’s market.

The massive correction in crude oil prices comes after the results of the US midterm election on Wednesday, which turned in favour of the Democratic Party, as commodity market investors now focus on a potential near-term end to the escalations in West Asia.

“The six-session rally has strengthened momentum, but the market is now vulnerable to consolidation after gaining sharply in a short period. Sustained trade above 24,330, continued financial-sector leadership and stable crude could carry the Nifty toward 24,775. A rebound in oil, reversal in foreign flows or failure by Bank Nifty to defend its breakout would indicate that part of the rally was driven by temporary geopolitical relief,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Analyst firm.

According to exchange data, on Wednesday, the foreign institutional investors (FIIs) bought equities worth ₹7,284.03 crore on a net basis, while the domestic institutional investors (DIIs) sold ₹3,712.23 crore worth of equities.

Globally, the other indices in Asia closed mixed with the South Korea index, witnessing a sharp correction despite a decline in oil prices after Democrats’ win in the US midterm elections.

Japan’s Nikkei index closed 2.17% lower, South Korea's KOSPI tanked 5.57%, while China’s Shanghai Composite gained marginally by 0.1%, while Hong Kong's Hang Seng rose 3.59%.

On Wall Street, the US equities rallied during the trading session on Wednesday. Data showed that the Dow Jones Industrial Average rallied to end 3.03% higher at 53,356.12 points, the S&P 500 index surged to close 1.58% higher at 7,688.62 points, while the tech-heavy Nasdaq 100 ended 0.91% up at 28,437.17 points.

Here are the key developments of Thursday's session that you need to know

As many as 3,723 stocks traded on the NSE on Thursday. Out of this, 2,547 advanced and 1,084 stocks declined, while 92 scrips remained unchanged.

This indicated that the market breadth was in favour of advances.

A total of 57 stocks hit their 52-week highs, while 99 stocks touched their one-year lows. Besides, 43 stocks hit their upper circuit limits, and 101 touched their lower circuit bands on Thursday.

The market capitalisation of NSE-listed firms stood at ₹497.48 lakh crore at the close of the session, adding ₹7.85 lakh crore from the previous session.

India VIX, the volatility gauge, stood at 15.57 levels, rising 2.5%.

The NIFTY Smallcap 100 index surged 0.67% to end at 19,132.45 levels, while the NIFTY Midcap 100 index closed at the 60,620.90 level, soaring 1.87%.

On the NIFTY50 index, 39 stocks advanced while 11 declined at the end of the session.

Bajaj Finance was the biggest contributing stock on the NIFTY50 index, rallying 7.65%. Shriram Finance (6.08%), Mahindra & Mahindra (5.59%), Maruti Suzuki (5.48%) and Tata Motors PV (5.4%) were the other top gainers.

On the flip side, Apollo Hospitals (-2.66%), ONGC (-2.13%), NTPC (-1.63%), Coal India (-1.34%) and Adani Ports (-1.33%) were among the top losers on Thursday.