Sensex gains 4,055 points in five sessions, Rs 20.8 lakh crore wealth added; US mid-term outcome in focus

Indian equity indices extended their winning run for a fifth consecutive session on Wednesday, with domestic benchmarks rising around half a per cent each in a volatile trading session. The broader market outperformed the benchmarks, with mid-cap and small-cap stocks leading the gains. Global cues, including developments following the US mid-term elections, remained in focus.

The 30-share BSE Sensex pack advanced 383.55 points or 0.50 per cent to close at 77,301.40. With Wednesday's gains, the index has surged 4,055.37 points over five consecutive sessions.

The NSE Nifty index climbed 149.75 points or 0.63 per cent to settle at 23,960.60. The index has gained 1,261.75 points over the past five sessions.

Sectoral performance remained broadly positive, with all indices except Nifty IT ending in the green. Media, realty and metal stocks led the gains.

Nifty Midcap100 advanced 1.55 per cent, while Nifty Smallcap100 surged 2 per cent.

Vinod Nair, Head of Research at Geojit Investments, said the rally on Dalal Street continued, with mid- and small-cap stocks extending their outperformance as risk appetite improved.

He attributed the positive sentiment to the US mid-term election outcome, which raised expectations of a more measured approach to trade and tariff policies, potentially supporting foreign institutional investor (FII) flows into emerging markets.

"Domestically, optimism around possible tax relief maybe in the upcoming Union Budget, better-than-expected quarterly earnings and resilient festive consumption added momentum to the rally," Nair also said.

He added that improving earnings visibility and healthy domestic demand could keep the near-term market bias constructive, although geopolitical risks and crude oil volatility could trigger intermittent profit booking.

Ajit Mishra, SVP (Research) at Religare Broking, noted that the pace of recovery remained measured as investors assessed global cues and developments surrounding the US mid-term elections.

"On the global front, markets remained mixed as investors assessed the implications of the US mid-term election outcome, particularly for AI-related investments, global trade and geopolitical developments. Meanwhile, crude oil prices holding around $103 per barrel provided some relief on the macroeconomic front. Continued foreign investor buying and encouraging domestic earnings also lent support to market sentiment," Mishra stated.

Rupee strengthens

The Indian rupee strengthened for a fourth consecutive session, gaining 10 paise to close at 94.64 against the US dollar, said Nandish Shah, Deputy Vice-President at HDFC Securities.

A softer dollar index and lower crude oil prices following the US mid-term election results supported the domestic currency. Declining bond yields and an improvement in risk appetite also contributed to the rupee's gains, Shah added.

Investor wealth

The five-session rally added substantially to investor wealth. The total market capitalisation (m-cap) of BSE-listed companies rose by around Rs 6.65 lakh crore to Rs 493.44 lakh crore on Wednesday, compared with Rs 486.79 lakh crore in the previous session.

Over the past five trading sessions, investor wealth has increased by Rs 20.81 lakh crore.

Nifty outlook

From a technical perspective, Shah of HDFC Securities said Nifty was seen approaching its 200-day simple moving average (SMA), placed at 24,003.

"A decisive move above this level (24,003) would be a significant development, as it would mark the first such close since February 26, 2026. A sustained move above 24,000 could open the door for the next resistance zone near 24,375, while immediate support has shifted higher to 23,700," Shah added.