Indian Shares Set To Extend Gains On Firm Global Cues

(RTTNews) - Indian shares look set to extend recent gains on Thursday, with underlying sentiment likely to be underpinned by renewed foreign fund inflows and a sharp retreat in international crude oil prices.

After U.S. Democrats scored wins in Republican strongholds for the first time in generations, investors are mulling what a divided government will mean for the war with Iran, President Trump's policy agenda and the AI trade.

Benchmark indexes Sensex and Nifty rose around half a percent on Wednesday to extend gains for a fifth consecutive session as softer oil prices eased inflation concerns.

The rupee settled 17 paise higher at 94.58 against the dollar, drawing support from a weak American currency and capital inflows from overseas investors.

Foreign institutional investors net bought shares worth Rs. 7,284.03 crore on Wednesday, while domestic financial institutional investors net sold shares worth Rs. 3,712.23 crore, according to provisional exchange data.

Asian markets were mostly higher this morning, even as chipmaking shares fell in South Korea and Japan on concerns surrounding potential regulations on AI data center construction following the U.S. midterm elections.

Gold prices were up nearly 2 percent at $4,126 an ounce in early Asian trade after witnessing the biggest jump since August on Wednesday as the dollar and Treasury yields slipped.

Brent crude futures were subdued around $94 a barrel, after having slumped nearly 9 percent to hit a two-month low on Wednesday.

Overnight, U.S. stocks soared, Treasury yields dropped across the curve and oil prices nosedived nearly 9 percent as a commanding "blue wave" in the midterms eased political uncertainty and stoked hopes that the war with Iran could end.

President Donald Trump said he was "absolutely willing" to accept the results of the midterm elections and work with Democrats to address political issues.

As traders rethink Trump's remaining policy agenda and the political trajectory into 2028, analysts said a divided government and a degree of gridlock to the economic backdrop is favorable for equity prices.

In economic news, payroll processor ADP reported that U.S. companies added more jobs in October than expected. A separate report showed the U.S. service sector expanded in October at the slowest pace in three months amid continuing cost pressures.

The Dow soared 3 percent to reach a two-month closing high and record its biggest single-day gain since April 9 last year, when President Trump announced the first pause on reciprocal tariffs.

The S&P 500 surged 1.6 percent and the tech-heavy Nasdaq Composite climbed 1.4 percent.

European stocks rose sharply on Wednesday, with investor sentiment boosted by stronger-than-expected corporate earnings and easing concerns about energy costs after the midterm election blowout delivered a new era in Washington.

The pan-European STOXX 600 advanced 1.8 percent. The German DAX rallied 2.2 percent, France's CAC 40 jumped 2 percent and the U.K.'s FTSE 100 climbed 1.8 percent.