Indian stock markets rose for a second straight session on Wednesday, 11 November, the first full trading day after the Diwali break. The Sensex closed at 81,879.40, up 772.75 points or 0.95 per cent, its highest finish since 26 February. The Nifty ended at 25,255.05, a gain of 210.40 points or 0.84 per cent, which PTI describes as a near nine-month high.

The day started far stronger than it ended. The Sensex opened with a gain of about 1,143 points and touched an intraday high of 82,520.40, up 1,413.75 points, before profit booking at higher levels trimmed the rise, according to ANI and PTI. The Nifty had opened 1.17 per cent higher.

Who gained and who lost

Among the 30 Sensex stocks, Mahindra & Mahindra jumped 5.25 per cent and InterGlobe Aviation, the parent of IndiGo, rose 4.37 per cent. Trent gained 3.02 per cent, Tata Steel 2.22 per cent, ITC 2.15 per cent and Axis Bank 2.14 per cent. Adani Ports, Tech Mahindra, HCL Tech and ICICI Bank were among the laggards.

Smaller companies did better than the big names. The BSE SmallCap Select index rose 1.29 per cent and the MidCap Select index 1.02 per cent. On the NSE, the Nifty Smallcap 100 advanced 1.47 per cent while the Nifty Midcap 100 gained 0.41 per cent. Public sector bank stocks led the sectors, with the Nifty PSU Bank index up 2.66 per cent. IT, healthcare and realty were the weak spots on the BSE.

Why the market moved

Analysts quoted by PTI and ANI point to the same few reasons. Foreign investors have returned as buyers: PTI reports they have put in Rs 53,739 crore into Indian equities so far in November, after two months of selling. Crude oil has cooled from its recent highs, with Brent at around USD 92 to 93 a barrel on the day. The rupee has held steady, and second-quarter company results have mostly been better than expected. Ajit Mishra of Religare Broking also cited some fading of global enthusiasm for AI-linked investments, which makes Indian shares look relatively attractive.

Vinod Nair of Geojit Investments noted that money is moving out of defensive pharma stocks into autos and banks, a sign that investors are willing to take more risk again.

The month so far

The numbers for November are striking. PTI says the Sensex has added 7,419.87 points, or 9.96 per cent, this month, and the Nifty has gained 2,201.95 points, or 9.55 per cent. Over the two sessions since the Diwali pause, investors' wealth, measured by the combined market value of BSE-listed firms, rose by Rs 4.30 lakh crore. Markets were closed on Tuesday for Balipratipada.

In commodities, ANI reported gold at about Rs 1,41,335 per 10 grams and silver up 2.45 per cent at about Rs 1,87,051 per kg on MCX during the day.

What to watch on Thursday

Brokers say the rally will depend on whether foreign buying and stable crude continue. The next test is data. India releases October consumer price inflation on Thursday, 12 November, and Reuters' poll of economists expects headline inflation to rise to 5.93 per cent, close to the top of the Reserve Bank of India's 2 to 6 per cent comfort band. US wholesale price data is also due. Geojit's Nair said these two numbers should shape the outlook for prices at home and for global interest rates.

This is a market report for information, not investment advice. Index levels and percentage moves are as reported by PTI and ANI at the close of trade.