Diwali Celebration Boosts Dalal Street: Investors Contribute Over Rs 6.9 Lakh Crore Amid Sensex and Nifty Surge
Stock markets in India experienced a significant surge on Thursday, with the BSE Sensex climbing over 1,600 points and the Nifty50 gaining 2% in early trading. This rally added more than Rs 6.9 lakh crore to investors’ wealth, driven by easing crude oil prices, renewed foreign investor interest, and improved global sentiment following the recent US midterm elections. The 30-share Sensex rose 1,609.54 points, or 2.08%, to reach 78,910.94, while the Nifty50 advanced 417.45 points, or 1.74%, to settle at 24,378.05.
The market’s upward trend extended to six consecutive sessions, building on Wednesday’s gains when the Sensex increased by nearly 384 points, closing at its highest level in over two months. The Nifty also saw a rise of 150 points, reflecting a robust five-session rally that had already lifted the Sensex by over 4,000 points, or 5%.
Crude Oil Prices Slide Below $95
Falling crude oil prices were a major factor supporting domestic equities on Thursday. Brent crude, the global oil benchmark, dropped below $95 per barrel, while US West Texas Intermediate (WTI) crude fell below $90. Brent crude futures declined by 50 cents, or 0.53%, to $94.12 per barrel, and WTI crude fell by 61 cents, or 0.69%, to $87.51.
This decline followed a sharp sell-off on Wednesday, where both benchmarks lost over 8%, settling at their lowest levels in more than two months. The drop in oil prices provided relief to India, which relies heavily on oil imports, and bolstered sentiment in domestic equities.
US Midterm Election Results Improve Global Sentiment
The outcome of the November 2026 US midterm elections also contributed to the positive market mood. The Democratic Party secured control of both the Senate and the House of Representatives, posing a significant political challenge to President Donald Trump’s administration. This shift raised expectations that Trump may face increased pressure to resolve the US-Israeli conflict with Iran.
The election results fostered hopes for a more measured approach to trade and tariff policies, which could enhance foreign institutional investor (FII) flows into emerging markets. Vinod Nair, head of research at Geojit Investments Limited, noted that the midterm outcome improved global sentiment.
Foreign Investors Return to Dalal Street
Renewed buying by foreign institutional investors provided another boost to domestic markets. Provisional data indicated that foreign investors purchased Indian shares worth Rs 72.84 billion ($769.65 million) on Wednesday, marking their fourth consecutive session of buying. In November alone, foreign investors infused approximately Rs 17,235 crore into Indian equities over just three trading sessions.
This resurgence comes amid concerns regarding foreign investors’ sustained exit from Indian markets, particularly due to India’s long-term capital gains (LTCG) tax. Ponmudi R, CEO of Enrich Money, stated that the return of foreign institutional investors as significant buyers is an encouraging development for domestic equities.
Rupee Touches Two-Week High
The Indian rupee also gained against the US dollar, opening at a two-week high of 94.35 per dollar on Thursday, up 0.3% from its previous close. The currency rose 14 paise to 94.32 against the dollar in early trading, following a close of 95.64 on Wednesday.
This marked the fifth consecutive session of gains for the rupee. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading at 101.18, down 0.53%.
Broader Markets and Banking Stocks Join the Rally
Thursday’s market rally was broad-based, with buying observed across various sectors and heavyweight stocks. Fourteen of the 16 major sectors ended in positive territory, while mid-cap and small-cap indices also gained over 1% each. The Nifty Midcap 100 advanced 1.46%, and the Nifty Smallcap 100 rose 1.49%.
Among sectoral indices, Nifty Private Bank led the gains with a rise of 2.55%. Other notable gainers included Bajaj Finance, Maruti Suzuki, and InterGlobe Aviation, which saw increases of 5.33%, 4.94%, and 4.88%, respectively. The latest gains extend the momentum seen over the previous week, with the Sensex closing at its highest level in more than two months.
