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The Indian markets have surged on falling crude oil prices, renewed FPI buying, improving global sentiment and optimism over corporate earnings.
The six-session winning streak is the longest for both benchmark indices in a year, marking a sharp reversal in investor sentiment after months of pressure from foreign fund outflows, elevated crude oil prices and geopolitical uncertainty.
The domestic equity markets are witnessing a remarkable turnaround, with benchmark indices extending their winning streak to a sixth consecutive trading session on Thursday, November 5. The Nifty has surged more than 8% during the six-session rally, while the Sensex has climbed over 6,150 points, as a combination of falling crude oil prices, renewed foreign portfolio investor (FPI) buying, improving global sentiment and optimism over corporate earnings brings investors back to Dalal Street.
The rally has gathered significant momentum in November, with Thursday’s session seeing another strong bout of buying across heavyweight stocks, banking shares, automobiles and information technology companies.
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The BSE Sensex surged 2,008.61 points, or 2.60%, to close at 79,310.01, while the NSE Nifty 50 jumped 576 points, or 2.40%, to settle at 24,536.60.
The latest gains have taken the Nifty from its October 28 closing level of 22,698.85 to 24,560, translating into a rise of 1,861 points, or around 8.2%. The Sensex has advanced from 73,246.03 to around 79,400, gaining about 6,154 points, or 8.4%, over the same period.
The six-session winning streak is the longest for both benchmark indices in a year, marking a sharp reversal in investor sentiment after months of pressure from foreign fund outflows, elevated crude oil prices and geopolitical uncertainty.
Six days, six rallies: How the Nifty and Sensex have performed
The rally began on October 29 and has continued through November 5, with the benchmarks recording gains in each of the six consecutive trading sessions.
| Benchmark | October 28 Close | November 5 Intraday | Gain |
|---|---|---|---|
| Nifty 50 | 22,698.85 | 24,560 | 1,861 points (8.2%) |
| Sensex | 73,246.03 | 79,400 | 6,154 points (8.4%) |
Note: Intraday figures in the afternoon on November 5, 2026. These are not final closing levels.
Intraday figures, not final closing levels.
Thursday’s rally has been particularly strong, with the Nifty reclaiming the psychologically important 24,500 mark and the Sensex moving towards 79,500. The benchmarks have also climbed to their highest levels in nearly three months.
1. Crude oil crash brings relief to Indian markets
One of the biggest triggers behind the sudden recovery has been the sharp correction in international crude oil prices. Brent crude futures fell nearly 9% in the previous session and continued trading lower on Thursday, slipping below $94 a barrel. The decline followed growing expectations that the Democratic Party’s strong performance in the US midterm elections could increase pressure on President Donald Trump and potentially pave the way for de-escalation of the US-Israeli conflict with Iran.
For India, which depends heavily on imported crude oil, lower oil prices are particularly beneficial. A sustained decline can ease pressure on the country’s import bill, inflation, the current account deficit and the rupee, while improving the cost outlook for oil-sensitive industries.
The correction in crude has also helped ease concerns over corporate margins and India’s macroeconomic stability, which had weighed on investor sentiment during the previous phase of market weakness.
2. Democrats’ US midterm victory lifts global risk appetite
Global markets have also provided a strong tailwind to Indian equities. The Democratic Party’s sweeping performance in the US midterm elections has triggered a sharp reassessment of the geopolitical and economic outlook. Investors are betting that the Republican Party’s losses could constrain Trump’s policy approach and increase the possibility of a negotiated resolution to the conflict in West Asia.
Wall Street responded with a powerful rally on Wednesday. The Dow Jones Industrial Average surged 1,569.40 points, or 3.03%, to close at 53,356.12, marking its biggest single-day gain since April 9, 2025. The S&P 500 and Nasdaq Composite also advanced.
The positive sentiment subsequently spread across Asian markets, supporting a broader recovery in risk assets.
For Indian equities, the prospect of lower geopolitical risk, easing energy prices and a possible rotation of global capital towards markets that have underperformed has improved the investment outlook.
3. FIIs return with a bang: Over Rs 20,800 crore pumped into cash equities in four sessions
The most important development for Dalal Street has been the return of foreign institutional investors. After months of sustained selling pressure, foreign investors have turned aggressive buyers in Indian equities, with their purchases gathering pace across both cash and derivatives segments.
In the cash market, FIIs were net buyers of Rs 872 crore on October 28, before turning sellers to the tune of Rs 944 crore on October 29. They subsequently returned to buying, purchasing equities worth Rs 3,599 crore on October 30 and Rs 3,115 crore on November 2.
The buying accelerated sharply in November, with foreign investors infusing Rs 6,837 crore on November 3 and another Rs 7,284 crore on November 4. This takes their cumulative net purchases to about Rs 20,835 crore over four consecutive sessions between October 30 and November 4.
The buying has also extended to index futures, where FIIs have built sizeable bullish positions. They purchased index futures worth Rs 4,407 crore on November 3 and Rs 2,420 crore on November 4.
FIIs have bought a net Rs 39,404 crore in Indian equities over 13 trading sessions since October 16.
Geojit Investments’ Chief Investment Strategist V K Vijayakumar said the sharp decline in crude prices, improving corporate earnings and the return of foreign flows have significantly changed the investment outlook for India.
He expects further short-covering in large-cap stocks, particularly banking and financial heavyweights, although he cautioned that domestic institutional investors’ tendency to sell into rallies could trigger profit booking at higher levels.
4. Corporate earnings offer another reason for optimism
The recovery in Indian equities is also being supported by improving corporate earnings. September-quarter results have been relatively encouraging, with early numbers suggesting that earnings growth is holding up better than anticipated.
According to Bloomberg data cited by Societe Generale, profits at roughly two-thirds of the BSE 100 companies that had reported results rose 20% year-on-year in the September quarter. This was the fastest growth in at least five quarters and exceeded analysts’ estimates.
Consumer staples, steel and financial companies have been among the sectors witnessing earnings upgrades.
The improvement in earnings is particularly significant because Indian equities had faced concerns over expensive valuations, slowing earnings growth and persistent foreign fund withdrawals.
With valuations becoming less demanding after the previous correction, stronger earnings could provide a more sustainable foundation for the ongoing recovery.
5. Banking, auto and IT stocks lead the market recovery
The rally has also become increasingly broad-based, with buying extending beyond a handful of heavyweight stocks. Banking and financial services stocks have attracted significant interest, supported by renewed foreign buying and expectations of a recovery in large-cap financial companies.
Auto stocks have also remained in demand, benefiting from improved domestic demand expectations and the broader improvement in risk appetite. IT stocks have participated in Thursday’s rally as global technology shares recovered.
According to Reuters, 15 of the 16 major sectoral indices were trading higher during Thursday’s session. Financial stocks advanced around 2.6%, while oil-sensitive stocks such as Asian Paints and IndiGo also witnessed strong buying.
The participation of multiple sectors suggests that the recovery is broader than a short-covering-driven bounce in the benchmark indices.
6. Can the Nifty rally sustain? What should investors watch?
With the Nifty gaining more than 8% in six sessions, the immediate question for investors is whether the rally has enough strength to sustain its momentum. Market experts remain constructive on the near-term outlook, particularly given the improvement in foreign fund flows, declining crude oil prices and better-than-expected earnings. However, the sharp recovery also raises the possibility of intermittent profit booking.
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said the short-term market texture remains positive, but temporary overbought conditions could result in range-bound activity at higher levels.
He identified the 23,800-23,750 zone as an important support area for the Nifty and said investors should watch how the index behaves around higher resistance levels.
V K Vijayakumar of Geojit Investments also expects further recovery in large-cap stocks, led by banking and financial companies, but cautioned that domestic institutional investors could sell into market rallies.
For now, the sustainability of the rally will depend on whether foreign investors continue buying, crude oil prices remain under control and corporate earnings deliver on expectations. Any renewed escalation in geopolitical tensions or a sharp reversal in global sentiment could challenge the recovery.
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Ask News18The market turnaround was driven by a combination of falling crude oil prices, renewed foreign portfolio investor (FPI) buying, improving global sentiment following the US midterm elections, and optimistic corporate earnings.
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Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
November 05, 2026, 15:19 IST
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