EconomyMarkets
Sensex jumps 1,623 points in pre-open as Brent slips below $100
Dalal Street lined up a strong start on Thursday as the Democrats' midterm win in the US and a sharp fall in crude lifted buyers, even as Seoul's chipmakers sank.
Key points
- The Sensex rose 1,623 points, or 2.10%, to 78,925 in pre-open trade.
- The Nifty 50 stood at 24,378, up 417 points, in the pre-open session.
- Brent crude traded below $100 a barrel after an 8% drop on Wednesday.
Indian shares were set for a sharp gap-up on Thursday as the pre-open session put the Sensex up 1,623 points, or 2.10%, at 78,925 shortly after 9 am. The Nifty 50 stood at 24,378, up 417 points or 1.74%, and was closing in on the 24,400 mark.
The two indices had ended Wednesday at 77,301.40 and 23,960.60, after a fifth straight day of gains. Thursday’s move, if it holds through the session, would wipe out much of the recent pullback in one go.
Oil and the US vote
Two things drove the buying. The Democrats’ win in the US midterm elections has raised hopes of a faster end to the West Asia conflict, and crude has fallen hard as a result. Brent traded below $100 a barrel after dropping 8% on Wednesday, with January futures near $93, down another 1% in Asian hours. For India, which imports most of its oil, cheaper crude eases worries about inflation and the import bill.
Wall Street set the tone overnight. The Dow rose 3.03%, the S&P 500 1.58% and the Nasdaq 1.44%. US futures gave back some of their early gains on Thursday morning.
The rupee also strengthened, gaining 29 paise to 94.36 against the dollar from Wednesday’s close of 94.65. Gold and silver futures rose 1.7% and 1.9%.
A weak Asia
The rest of Asia did not share the mood. South Korea’s Kospi was down 3.6% by mid-morning as traders sold chip and technology shares, and Japan’s Nikkei 225 slipped 0.39%.
Chart watchers say the Nifty needs to climb above 24,780 before the broader trend can be called better. Bombay Coated & Special Steels makes its market debut on Thursday.