Indian shares set to open higher as oil hits 2-month low after US Democratic win

Nov 5 (Reuters) - Indian shares are expected to open higher on Thursday, as crude oil prices slumped to a two-month low as investors bet that Democrats' victory in US midterm elections could hasten the end of the US-Israeli war on Iran.

GIFT Nifty futures were at 24,295.5 as of 8:01 a.m. IST, indicating a positive start for the benchmark Nifty 50, which closed at 23,960.6 on Wednesday.

Foreign investors bought Indian shares worth 72.84 billion rupees ($769.65 million) on Wednesday, as per provisional data. This marks their fourth straight session of buying, suggesting they may be returning to India after a strong sell-off this year.

Brent crude futures dropped 1% to $93.5 per barrel, after an 8.7% slide in the previous session. [O/R]

US and European stocks rallied on Wednesday after Democrats seized control of both chambers of Congress in the US midterm elections, providing greater political clarity and reducing uncertainty that has weighed on markets. [MKTS/GLOB]

Democrats' win is being seen as a scathing rebuke to President Donald Trump, whose administration's global tariff policy and decision to go to war in the Middle East also contributed to the Indian market's underperformance this year.

The domestic markets are now showing signs of a recovery. Indian benchmark Nifty 50 and BSE Sensex have risen 5.6% in the last five sessions, in their longest winning streak in nearly five months, aided by foreign buying, easing oil prices, and strong earnings.

"Unlike the earlier gradual decline (in oil prices), the magnitude of this move can materially improve India's near-term macro and earnings outlook if sustained," said Hariselvan Radhakrishnan, founder and CEO of research advisory firm HST Wealth.

STOCKS TO WATCH

** Exchange operator BSE reported a 45% rise in second-quarter profit and signalled a strong recovery in its derivatives segment after a sequential slowdown caused by new closing auction rules

** Apollo Hospitals Enterprise quarterly profit rose by nearly a third, broadly in line with analysts' estimates, as strong demand for complex procedures drove growth in its core healthcare services business

** Eyewear retailer Lenskart Solutions <LENS.NS reported that its profit more than doubled in the second quarter as a rise in eye tests and new store additions lifted sales of its eyeglasses 

($1 = 94.6400 Indian rupees)

(Reporting by Vivek Kumar M; Editing by Rashmi Aich)