Sensex, Nifty Extend Rally After US Midterms as Gold Jumps 3% to $4,047

Indian benchmark indices extended their winning run to five sessions on Wednesday, with the NSE Nifty50 closing up 0.63% at 23,960 and the BSE Sensex rising 0.50% to 77,301. The rally followed a gain of close to 5% over the previous four sessions, even as the market swung more sharply than usual during the day.

The global backdrop shifted after Democrats took control of both the Senate and the House in the US midterm elections, giving the party a foothold in Congress for the remainder of Donald Trump's presidency. Market participants read the result as a possible signal of a more restrained approach to trade and tariffs, which could draw foreign portfolio money back toward emerging markets such as India.

Analysts pointed to several domestic supports as well. Vinod Nair of Geojit Investments said hopes for tax relief in the coming Union Budget, better-than-expected quarterly earnings and resilient festive-season demand had all added momentum. Foreign institutional investors have also turned net buyers over the last few sessions, according to Jateen Trivedi of LKP Securities.

Crude was a key thread. Brent traded slightly lower near $102 a barrel, and a sustained easing in oil prices helps India, a major importer, by reducing inflationary pressure and the import bill. Siddhartha Khemka of Motilal Oswal noted that the outlook still depends on how Washington handles the West Asia conflict, since any escalation or diplomatic progress could move crude and global risk appetite quickly.

Elsewhere, the safe-haven trade took off. Gold rose about 3% to $4,047 an ounce as a post-election slide in the dollar boosted bullion demand, while spot silver climbed nearly 4% to $51.67. The rupee firmed 0.16% to 94.78, helped by hopes for tax cuts and a weaker greenback. Not every corner joined the gains: Nifty IT fell 1.5% as Asian technology stocks sold off over worries about heavy AI spending and possible regulatory scrutiny in the US.

For now, the picture is one of cautious optimism. Midcap and smallcap indices also rose 0.63% each, suggesting the advance reached beyond large caps, but traders will be watching US policy on West Asia and crude prices closely in the sessions ahead. Read the original report from The New Indian Express.

Related: Wall Street selloff: Nasdaq sinks 5.5%, S&P 500 sheds $3 trillion on AI curbs fear · Samvat webinar: Experts back balanced portfolios as Diwali opens new investing year