Dalal Street woke up to fireworks of a different kind on Wednesday, 11 November, as the Sensex surged more than 1,300 points in early trade and the Nifty 50 powered past the 25,400 mark. The rally, which came a day after markets stayed shut for Diwali Balipratipada, added nearly Rs 6 lakh crore to investor wealth in a matter of hours and stretched one of the strongest November runs the market has seen in years.
At 9.45 am, the Sensex was trading at 82,486, up over 1,300 points, while the Nifty had jumped more than 350 points to trade above 25,400. The gains cooled a little as the session wore on, but the benchmarks stayed firmly in the green through the afternoon. By 3.12 pm, the Sensex was still up around 370 points at 81,478 and the Nifty was holding above 25,180.
A rally built through November
Wednesday’s jump was not a one-day wonder. The Nifty has now surged by around 9 percent in just six trading days this month, a run powered almost entirely by foreign money returning to Indian equities. Foreign institutional investors have bought shares worth Rs 53,170 crore so far in November, and they have been net buyers on every trading session of the month.
On Monday alone, foreign investors bought equities worth Rs 7,212 crore, according to provisional exchange data. The buying marks a sharp reversal: foreign investors had pulled out around 31 billion dollars from Indian equities in the first ten months of 2026, and have poured in 8.2 billion dollars since mid-October, including 5.8 billion dollars in just six trading sessions in November.
Strong second-quarter earnings have given the rally its backbone. Earnings growth in the Nifty 50 came in at nearly 24 percent in the July-September quarter, a 12-quarter high, according to Geojit Investments. Around 181 listed companies at least doubled their net profit from a year earlier during the quarter, spanning banking, metals, pharmaceuticals, energy and consumer businesses.
Four factors behind the surge
Analysts point to four clear drivers behind Wednesday’s rally:
- Foreign buying continues: Sustained FII inflows have lifted sentiment after a sharp selloff earlier in the year rattled the market. November has now seen seven straight sessions of net foreign buying.
- Strong Q2 earnings: Better-than-expected results from India Inc have compressed the Nifty’s forward price-to-earnings ratio to fair levels, giving investors comfort to buy at higher prices.
- A stronger rupee: The rupee opened 0.2 percent higher at 93.72 against the US dollar, against a previous close of 93.9275. The currency has emerged as one of Asia’s best-performing in this financial year.
- Easing crude prices: Brent crude traded near 92 dollars a barrel, well below the above-100 levels seen through much of this year. Cheaper oil is a direct relief for India, the world’s third-largest oil importer.
Who led the gains
The rally was broad-based, with nearly every Sensex constituent trading in the green in the morning. IndiGo led the pack, rising 5 percent, while Mahindra and Mahindra, HDFC Bank, SBI, Bharti Airtel, Power Grid, Eternal, Asian Paints, Axis Bank, ICICI Bank and HCL Tech gained up to 3 percent each.
Smaller stocks joined in too. The Nifty Smallcap 250 index gained more than 1 percent and the Nifty Midcap 100 climbed nearly a percent. Market breadth stayed strongly positive, with more than 2,500 shares advancing against around 550 declines on the NSE in the morning session. Among sectors, PSU banks jumped around 2 percent to lead the gains, while pharma was the rare laggard.
What could slow the rally
Analysts are upbeat but not without caution. V K Vijayakumar, chief investment strategist at Geojit Investments, said the rally has more steam left and will continue to be led by largecaps in banking, financials, telecom, capital goods, select auto and pharmaceutical stocks. But he flagged two risks: rising US inflation and the prospect of rate hikes by the US Federal Reserve, which has pushed the 10-year US bond yield back to 5 percent, and profit booking by domestic institutional investors.
Technical analysts also sounded a note of caution. Geojit’s Anand James said the Nifty’s upside expectation has been moderated to 25,327 for the time being, with higher chances of a pullback after such a sharp run.
For now, though, the mood on Dalal Street is unmistakably celebratory. After a Diwali break, investors returned to a market that has added wealth at a pace rarely seen, and the question on everyone’s mind is whether the foreign money keeps flowing.
FAQs
How much did the Sensex rise on 11 November?
The Sensex surged more than 1,300 points in early trade to 82,486, before paring gains to around 370 points up by mid-afternoon.
Why is the market rising?
Sustained foreign institutional buying, strong second-quarter earnings, a firmer rupee and easing crude oil prices are the four main drivers.
How much have foreign investors bought in November?
Foreign investors have bought Indian equities worth Rs 53,170 crore so far in November, including Rs 7,212 crore on Monday, 9 November.
Which stocks led Wednesday’s rally?
IndiGo rose 5 percent, while Mahindra and Mahindra, HDFC Bank, SBI, Bharti Airtel, Power Grid and ICICI Bank were among the top gainers.
Was the market open on Tuesday?
No. Both BSE and NSE were closed on Tuesday, 10 November, for Diwali Balipratipada.
Dalal Street will now watch whether foreign investors keep buying through the rest of the week, and whether the strong earnings season can carry the rally beyond the 25,400 mark.
