Sensex up 10.6% in 7-session pre-Diwali rally, best in 35 yrs

In a remarkable display of market resilience, the Sensex witnessed a staggering 10.6% rise over a seven-day pre-Diwali rally, marking its best such performance in over three decades. This surge saw the index climb an impressive 7,782 points, driven predominantly by a massive inflow of foreign investment totaling approximately Rs 49,500 crore ($5.2 billion).

The rally was fueled by a confluence of factors, including the return of foreign funds to Indian stocks. This surge was further bolstered by optimism surrounding the US midterm elections, which signaled a potential shift towards policy stability, and the prospect of a diplomatic resolution to the ongoing turmoil in the Middle East, leading to a sharp decline in crude oil prices by nearly 20% within a fortnight.

On Friday alone, the index surged by 1,781 points, marking the third consecutive session in which the Sensex recorded a four-figure point gain. Notably, this rally transpired despite a significant decline in the US market, primarily triggered by a sharp drop in AI-related stocks.

The rally culminated with the Sensex closing above the psychologically significant level of 80,000 points, while the Nifty surged past the 25,000 mark after more than nine months. This period of remarkable growth underscores the dynamic nature of India's financial markets and the influence of global events on domestic equity performance.