Diwali Fireworks on Dalal Street: Sensex Soars 1,610 Points, Nifty Jumps 1.74%
Indian stock markets soar with Sensex gaining 1,610 points and Nifty jumping 1.74% amid falling crude oil prices and foreign investor buying.
The Indian stock market experienced a massive surge on Thursday, mirroring a festive celebration on Dalal Street. In a powerful rally, the Sensex Nifty rally saw the Sensex skyrocket by 1,609.54 points, a gain of 2.08 per cent, to close at 78,910.94. Simultaneously, the Nifty 50 climbed 417.45 points, or 1.74 per cent, settling at 24,378.05.
This bullish momentum was primarily fueled by a significant drop in global crude oil prices and a renewed appetite among foreign institutional investors, creating a perfect storm for market gains.
Crude Oil Dip and Global Political Shifts
A major catalyst for the rally was the sharp decline in Brent crude prices, which plummeted below the USD 100 per barrel mark. At the time of reporting, crude was trading at USD 94 per barrel. For an economy like India, which relies heavily on oil imports, this decline provides substantial relief and boosts domestic equity sentiment.
Global sentiment was further influenced by the November 2026 US midterm elections. The Democratic Party secured control of both the House of Representatives and the Senate, a result that represents a major political blow to the administration of President Donald Trump.
Foreign Investors Return in Large Numbers
Overseas institutional buyers have made a strong comeback to the Indian market. In just the first three trading sessions of November, foreign investors infused approximately Rs 17,235 crore into Indian equities.
"The sharp advance reflects improving global risk sentiment, supported by lower crude prices and renewed institutional buying," said Ponmudi R, CEO of Enrich Money. He noted that while the initial jump is impressive, the ability of the benchmarks to sustain these gains will be key to determining if this is a broader upward move.
Broad-Based Gains Across Sectors
The rally wasn't limited to just the heavyweights; it was felt across various market segments:
- Nifty 100: Advanced 1.78 per cent.
- Nifty Midcap 100: Rose 1.46 per cent.
- Nifty Smallcap 100: Gained 1.49 per cent.
In terms of sectors, the Nifty Private Bank led the charge with a 2.55 per cent increase. Other notable gainers included Nifty Realty (1.92%), Nifty IT (1.72%), Nifty Auto (1.66%), Nifty Consumer Durables (1.52%), Nifty Media (1.36%), and Nifty FMCG (1.08%).
Bullion Markets Shine
It wasn't just stocks that saw green; precious metals also climbed. Gold rose by 1.48 per cent to reach Rs 1,45,356 per 10 grams (24-carat), while silver increased by 1.34 per cent to Rs 1,90,255 per kg.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO, suggested that metals have now corrected the "post-Diwali froth of 2025" and are in a "sweet spot" for a new bull run. However, he cautioned that this depends on oil prices remaining stable, noting that oil only "boils" if fresh conflict erupts in West Asia.
Asian Market Performance
While India celebrated, the performance across other Asian markets was mixed:
- Hong Kong's Hang Seng: Jumped 3.36 per cent to 24,723.
- Straits Times: Rose 0.10 per cent to 5,297.
- Japan's Nikkei 225: Declined 0.58 per cent to 61,825.
- Taiwan Weighted: Fell 1.67 per cent to 22,421.
- South Korea's KOSPI: Dropped approximately 4 per cent to 5,459.