Mumbai: Indian stock markets staged a recovery on Thursday, November 12, as the Sensex and Nifty reversed early losses and moved into positive territory. Falling crude oil prices and sustained buying by foreign institutional investors (FIIs) supported investor sentiment.
The BSE Sensex touched an intraday high of 82,057.39, gaining around 316 points or 0.38%. Meanwhile, the NSE Nifty 50 climbed 86 points or 0.34% to 25,342 during morning trading. Both benchmark indices had opened lower amid cautious sentiment across Asian markets.
Crude Oil Prices Fall
Declining international crude oil prices provided relief to domestic equities, particularly as India depends heavily on imported energy. Brent crude dropped more than 1% to $91.51 per barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1% to $85.41. Lower oil prices could ease inflationary pressures and reduce India's import costs.
FII Buying Supports Rally
Foreign institutional investors have emerged as major buyers in Indian equities, investing ₹65,735 crore so far in November. According to market experts, the Nifty has gained 9.55% across seven trading sessions, largely supported by aggressive foreign investment. Interestingly, institutional investment patterns have reversed, with FIIs turning buyers while domestic institutional investors (DIIs) continue booking profits.
Sectoral Performance Mixed
Despite gains in benchmark indices, sectoral performance remained uneven. Nifty IT declined more than 1%, while Auto and Healthcare indices also faced selling pressure. However, Nifty PSU Bank advanced 0.23%, Media gained 0.20% and Consumer Durables rose 0.14%.
Inflation Data In Focus
Investors are awaiting India's October Consumer Price Index (CPI) inflation figures, scheduled for release later on Thursday. The inflation reading could influence expectations surrounding the Reserve Bank of India's future interest rate decisions.
Meanwhile, Asian markets traded mixed amid technology-sector volatility, while Wall Street closed higher overnight as concerns surrounding artificial intelligence spending eased.
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