Sensex gains 316 points, Nifty at 25,342 as crude oil dips 1%
Synopsis
Key Takeaways
The BSE Sensex and NSE Nifty50 traded higher in early deals on Thursday, 12 November, lifted by a decline of over 1 per cent in global crude oil prices. The Sensex touched an intraday high of 82,057.39, gaining 316 points or 0.38 per cent, while the Nifty50 climbed 86 points or 0.34 per cent to 25,342 in morning trade.
Opening Weakness, Then a Reversal
Both headline indices had opened on a cautious note, tracking mixed sentiment across Asian markets. The early weakness gave way as falling crude prices improved the macro outlook and foreign buying gathered pace. This reversal underscores the sensitivity of domestic benchmarks to global commodity signals, particularly oil — a key input cost for India's import-heavy economy.
Sectoral Snapshot: IT Drags, PSU Banks Gain
Nifty IT was the session's biggest drag, slipping over 1 per cent. Nifty Auto and Nifty Healthcare also declined by nearly 1 per cent each. On the other side, Nifty PSU Bank rose 0.23 per cent, Nifty Media added 0.2 per cent, and Nifty Consumer Durables edged up 0.14 per cent.
FIIs vs DIIs: The New Market Dynamic
According to market experts, the Nifty's rally of 9.55 per cent across seven trading sessions in November so far has been driven primarily by aggressive buying from foreign institutional investors (FIIs). 'The tug of war between FIIs and domestic institutional investors (DIIs) till November saw FIIs on the sell side and DIIs on the buy side,' experts noted. That dynamic has now fully reversed — FIIs have turned aggressive buyers while DIIs have shifted to consistent sellers. FIIs have already deployed ₹65,735 crore in Indian equities in November alone. Experts suggest this trend 'has the potential to reach an all-time high number,' supported by 'impressive earnings growth as evidenced by good Q2 results.' They cautioned, however, that 'DIIs may continue profit booking, putting brakes on the rally.'
Crude Prices and Global Cues
Brent crude traded more than 1 per cent lower at $91.51 per barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1 per cent to $85.41 per barrel. Asian markets were mixed, with investors cautious amid fresh volatility around Nvidia, the chipmaker central to this year's AI-driven rally. Overnight, US markets closed higher on Wednesday after concerns over heavy artificial intelligence spending eased.
Key Data Point to Watch
Market participants will closely track India's October CPI inflation data due later on Thursday. A benign print could reinforce the bullish narrative, while a surprise on the upside may temper enthusiasm. With macro relief from lower crude and strong FII inflows, the near-term market direction will hinge on this crucial data release.