The Indian stock market staged a powerful rally on Thursday, November 5, with benchmark indices surging nearly 2% in morning trade as falling crude oil prices, fresh foreign investor buying and improving global sentiment lifted investor confidence. The BSE Sensex jumped more than 1,500 points, while the NSE Nifty 50 crossed the psychologically important 24,400 mark, extending the market’s winning streak to a sixth consecutive session. Buying was visible across several sectors, particularly automobiles, financial services, cement and real estate.
The Sensex was trading at 78,807.27, up 1,505.87 points or 1.95%. The Nifty 50 advanced 427.70 points, or 1.79%, to 24,388.30, after crossing 24,400 earlier in the session. The rally followed Wednesday’s positive close, when the Sensex gained 383.55 points to settle at 77,301.40, while the Nifty added 149.75 points to close at 23,960.60.
The improvement in global risk appetite, coupled with easing concerns over geopolitical tensions, provided the biggest boost to domestic equities. A steep fall in international crude oil prices emerged as a key trigger, with Brent crude slipping below $95 per barrel after declining nearly 9% in the previous session. The correction followed growing expectations of a possible understanding between the United States and Iran that could help ease tensions in West Asia.
Reports suggested that Washington had approved a draft understanding and conveyed it to Tehran through Qatari mediators. The possibility of a diplomatic breakthrough raised hopes of reduced disruptions to oil supplies and shipping routes in the region. However, uncertainty remains, as Iran has indicated that the Strait of Hormuz can reopen only if fighting across the region comes to an end.
The decline in crude prices is particularly important for India, which relies heavily on imported oil to meet its energy requirements. Lower oil prices could reduce the country’s import bill, ease inflationary pressures and improve the financial outlook for companies that depend on petroleum-based raw materials. Airlines, paint manufacturers, tyre makers and oil marketing companies were among the stocks attracting buying interest on Thursday.
The US midterm election results also contributed to the positive market mood. The Democratic Party’s strong performance, which resulted in Republicans losing control of both chambers of Congress, eased some investor concerns surrounding President Donald Trump’s trade and foreign policies. Investors are also assessing whether the election outcome could influence Washington’s approach to the West Asia conflict and international trade.
Wall Street responded positively to the developments, with the Dow Jones Industrial Average jumping 1,569.40 points, or 3.03%, to close at 53,356.12 on Wednesday. The S&P 500 gained 1.58%, while the Nasdaq Composite advanced 1.44%. The positive sentiment supported several Asian markets, although technology stocks faced selling pressure in South Korea and Japan.
Foreign institutional investors (FIIs) provided another significant boost to Indian equities. Provisional data showed that foreign investors purchased shares worth ₹7,284 crore on Wednesday, marking one of their strongest single-day buying sessions in recent months. Continued foreign fund inflows have helped strengthen the recovery in domestic markets after a period of selling pressure.
The banking, automobile, financial services, cement and real estate sectors led Thursday’s rally. The Nifty Auto index advanced more than 3%, while financial services and banking stocks gained over 2%. Broader market indices also traded firmly higher, with both midcap and smallcap stocks recording gains.
Among individual stocks, IndiGo, Bajaj Finance and Maruti Suzuki emerged as leading Sensex gainers. IndiGo shares rose as much as 5% as falling crude prices raised expectations of relief from elevated aviation fuel expenses. Asian Paints also attracted buying interest amid expectations of lower raw material costs. Ashok Leyland, Balkrishna Industries, Motilal Oswal Financial Services and SBI Card were among the notable gainers in the Nifty Midcap 150. Ashok Leyland shares climbed around 10%.
However, the rally did not benefit every stock. PI Industries plunged 14.22%, making it the biggest loser in the Nifty Midcap 150 during morning trade. Oil India declined 5.33%, followed by Hitachi Energy, GE Vernova T&D and FSN E-Commerce, the parent company of Nykaa.
Cummins India also witnessed heavy selling, with its shares falling nearly 15% after the company reported a 19% year-on-year decline in second-quarter net profit to ₹507 crore, against ₹622 crore in the corresponding period last year. The decline in earnings and pressure on margins disappointed investors.
The Indian rupee also strengthened, opening at 94.35 against the US dollar, its highest level in two weeks. The currency gained around 0.3% from its previous close, supported by the fall in crude prices and improved sentiment towards Asian currencies.
Going ahead, investors will closely track developments in West Asia, crude oil movements, foreign investment flows and corporate earnings. While the sharp rally reflects renewed confidence in Indian equities, the sustainability of the recovery will depend on whether geopolitical risks ease further and global economic conditions remain supportive. For now, lower oil prices and renewed foreign buying have given Dalal Street a much-needed boost.