Investors richer by Rs 29 lakh cr in 6 days, but will the market rally last?
The latest rally has extended the market's winning streak to six consecutive sessions. During this period, the Sensex has gained 6,063.98 points, or 8.27%, while the Nifty has advanced 1,837.75 points, which is an increase of 8%. Despite the recent recovery, the Nifty50 and Sensex remain down 6.1% and 6.9%, respectively, in 2026.
Indian equity markets experienced a sharp surge of over 2,000 points on both the BSE Sensex and NSE Nifty indices on Thursday, driven by a decline in oil prices following the Democrats' victory in the US midterms. The rally marked the longest winning streak in a year for both indices, with gains exceeding 8% over six consecutive trading sessions. Investors' wealth increased by approximately Rs 29 lakh crore based on market capitalization data.
The surge was fueled by factors such as a return of Foreign Institutional Investors (FIIs), improved corporate earnings, and a retreat in valuations. FIIs returned to the Indian market, investing a record Rs 72.84 billion in a single day, the largest FII inflow since October 2025. Meanwhile, improving earnings for Indian companies, particularly in the absence of the oil and gas sector, made stocks more attractive to foreign investors.
Additionally, the Democrats' control of both US legislative branches reduced concerns over sudden policy shifts, potentially de-escalating the Iran conflict and easing US tariff pressures on Indian markets. The decline in crude oil prices, with Brent crude dropping by around 10% to approximately $94 a barrel, further supported the rally.
These factors collectively contributed to the sustained market rally, raising expectations of a potential recovery in Indian stocks from their underperformance against global markets. However, the question remains whether this rally will maintain its momentum in the long run.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
