Indian equity markets witnessed a strong rally on Thursday, November 5, as improving global market sentiment following the US midterm elections boosted investor confidence. The benchmark BSE Sensex surged more than 2,000 points, while the Nifty 50 gained 2.4%, marking one of the strongest single-day performances of the year.
The 30-share BSE Sensex climbed 2,008.61 points to close at 79,310.01. Meanwhile, the NSE Nifty 50 advanced 576 points, or 2.4%, to settle at 24,536.90.
Thursday’s rally marked the second-largest single-day gain for the Sensex in 2026. The index had previously recorded a bigger jump of 2,946 points on April 8. The latest surge represents the most significant market rally in nearly seven months.
Banking, Auto and Realty Stocks Lead Market Rally
Buying activity was widespread across major sectors, with banking, automobile, cement, financial services and real estate stocks attracting significant investor interest.
Sectoral indices posted strong gains, with several rising more than 2.5%. The Nifty Cement index advanced 2.74%, while the Nifty Financial Services and Nifty Financial Services ex-Bank indices gained 2.40% each.
The Nifty Bank index rose 1.71% to close at 56,867.80. The Nifty Private Bank index gained 1.89%, while the Nifty PSU Bank index advanced 1.19%. The Nifty Realty index also performed strongly, climbing 2.24%.
Other sectors participated in the rally as well. The Nifty IT index gained 1.74%, while the Nifty Media index advanced 1.84%.
Mid-Cap and Small-Cap Stocks Also Gain
The positive momentum extended beyond large-cap stocks, with mid-cap and small-cap shares witnessing considerable buying interest.
The Nifty Midcap 100 index climbed 1.24%, while the Nifty Smallcap 100 index gained 1.26%. The Nifty Smallcap 250 advanced approximately 1.44%, and the Nifty Microcap 250 recorded a stronger gain of 2.02%.
Among the 30 Sensex constituents, InterGlobe Aviation, Asian Paints, Bajaj Finance, Maruti Suzuki, Mahindra & Mahindra and UltraTech Cement emerged among the leading gainers.
US Midterm Election Results Improve Global Market Sentiment
The sharp rally in Indian equities came amid improving global investor sentiment following the US midterm elections held on November 3, 2026.
The election results dealt a significant setback to US President Donald Trump’s administration, with the Democratic Party securing control of both chambers of Congress—the Senate and the House of Representatives. The Republican Party, led by President Trump, faced a weaker electoral performance.
The political developments contributed to a shift in global market sentiment, supporting investor confidence across equity markets, including India.
Brent Crude Prices Fall Below $100 Per Barrel
Another important factor supporting market sentiment was the decline in international crude oil prices.
Brent crude fell below the psychologically significant $100-per-barrel mark and was trading at approximately $94 per barrel at the time of reporting.
Lower crude oil prices are generally positive for India, which depends heavily on imports to meet its domestic energy requirements. A sustained decline in oil prices could help ease inflationary pressures, reduce the country’s import bill and support corporate profitability.
Foreign Investors Pour ₹17,235 Crore Into Indian Equities
Foreign institutional investors (FIIs) have also emerged as significant buyers in the Indian equity market.
During the first three trading sessions of November, FIIs invested approximately ₹17,235 crore in Indian equities, reflecting renewed interest from overseas investors.
However, domestic institutional investors (DIIs) continued their selling activity. They recorded net outflows of ₹3,712 crore, marking their fourth consecutive trading session of net selling.
The combination of foreign fund inflows, falling crude oil prices and improved global sentiment provided support to Thursday’s strong market performance.
