Indian stocks edge higher as investors weigh foreign inflows, US election results

Indian benchmark indices gained on Wednesday as investors weighed the revival of foreign fund inflows, softening crude oil prices and the impact of US midterm election outcomes.

Sensex gained 0.1% each to 23,830.6 and 77,020.48 respectively as of 10:28 a.m. IST, with the indices up around 5% in four days, Reuters reported.

Foreign investors purchased $821 million of Indian shares in November, bringing their net divestment to $30.59 billion. Brent crude futures declined 0.6% to $103 a barrel, providing some support to local markets.

“We have experienced very rapid gains in the last few months and how well we hold these gains will be mostly be linked to oil prices,” said Anita Gandhi, head of the institutional desk at Arihant Capital Markets, told Reuters.

She noted the market were being supported by positive corporate earnings and an indication that foreign investors were returning to the market.

Fourteen of the 16 major sectors ended in positive territory, with small-cap and mid-cap indices increased 0.5% and 0.6%, respectively.

They also looked at how markets around the world were reacting to the US election result and how it could impact energy prices, and US trade and investment in AI infrastructure.