Indian stock markets delivered a Diwali gift a few days early on Thursday, November 5, 2026. The Sensex jumped more than 1,400 points in early trade and the Nifty raced past 24,300, as a sharp crash in crude oil prices and the outcome of the US midterm elections sent investors rushing back into equities. By late morning, the rally had put nearly Rs 7.35 lakh crore back into investor pockets in a single session.
It was the sixth straight session of gains for both benchmarks, and the strongest single-day move of the year so far. The Sensex touched an intraday high of 79,001 before trading near 78,772, up 1,470 points or 1.90 per cent. The Nifty climbed to a day high of 24,442 and was trading near 24,380, up 431 points or 1.80 per cent. The combined market value of BSE-listed companies crossed Rs 500 lakh crore again, reclaiming the 5 trillion dollar mark.
Crude crash does the heavy lifting
The biggest trigger was oil. Brent crude, the global benchmark, fell almost 10 per cent to around 94 dollars a barrel, its sharpest slide in months. Traders pulled the war premium out of prices after signals that political pressure in Washington could push the US administration towards negotiations with Iran.
For India, which imports most of its crude, cheaper oil eases the import bill and cools inflation expectations. That is why airlines, paint makers and oil marketing companies were among the first stocks to move. InterGlobe Aviation, the parent of IndiGo, Asian Paints, Bajaj Finance, Maruti Suzuki, Mahindra and Mahindra and UltraTech Cement led the Sensex gainers, rising between 4 and 5 per cent each.
“With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10 per cent fall in Brent crude to around 94 dollars,” said V.K. Vijayakumar, chief investment strategist at Geojit Investments. He cautioned, though, that the fall is driven by hopes of a settlement, not a confirmed deal, so prices could bounce back if talks stumble.
US midterm results cheer global markets
The second trigger came from Washington. American voters on Tuesday, November 3, handed the opposition Democratic Party control of both chambers of the US Congress, a stinging rebuke to President Donald Trump. His party also lost key governor races in states such as Texas, Georgia, Iowa and Ohio.
US markets celebrated overnight. The Dow Jones Industrial Average surged 3.03 per cent, the S and P 500 jumped 1.58 per cent and the Nasdaq Composite rose 1.44 per cent. Indian markets followed that lead when trading opened on Thursday.
Analysts say a weakened Trump administration could ease pressure on India in trade talks, particularly around tariffs and market access. Talk that the long-term capital gains tax could be scrapped in the coming Budget has also lifted sentiment. Over the last four trading sessions, foreign institutional investors bought equities worth Rs 20,834 crore, and on Wednesday alone they bought shares worth Rs 7,284 crore.
A broad rally, not a narrow one
What stood out on Thursday was the breadth of the rally. Of the 4,287 stocks listed on the BSE, 3,091 were trading in the green while 984 declined. At least 98 stocks touched fresh 52-week highs and 170 hit their upper circuits.
Every sectoral index was in positive territory. Nifty IT and Auto rose more than 3 per cent each, while PSU Bank and Private Bank indices gained over 2 per cent. Nifty Bank alone added more than 1,300 points. Midcap and smallcap indices also climbed 1 to 2 per cent. Only a handful of heavyweights missed out, with Kotak Mahindra Bank and Bharti Airtel the main laggards.
The rally comes just before Dhanteras, when buying of gold, cars and homes traditionally picks up. Strong quarterly earnings have helped too, with BSE Ltd reporting a 45 per cent jump in quarterly profit and Nykaa’s profit more than tripling.
What investors should watch next
- Crude oil: Brent holding near 94 dollars matters more than the one-day fall.
- Foreign flows: FII buying has returned after weeks of selling. Whether it continues will decide if this rally has legs.
- US politics: Trump still holds veto power, so a divided Congress could mean prolonged friction in Washington.
- Festive demand: Dhanteras sales data will show whether consumer demand matches the market mood.
Over the last five trading sessions, the Sensex has jumped 4,055 points, or 5.53 per cent, and the Nifty has surged 1,262 points, or 5.55 per cent. Both indices are now at their highest levels since August. For now, the market has two powerful tailwinds, cheap oil and a friendlier global mood.
FAQs
How much did the Sensex rise today?
The Sensex jumped 1,403 points in early trade on Thursday, November 5, 2026, and later traded near 78,772, up about 1,470 points, close to its intraday high of 79,001.
Why did Indian markets rally today?
Brent crude crashed nearly 10 per cent to around 94 dollars a barrel, the Democrats won control of the US Congress in the midterm elections, and foreign investors bought heavily. US markets also surged overnight.
How much wealth did investors gain?
The market value of BSE-listed companies rose to Rs 500.79 lakh crore, up nearly Rs 7.35 lakh crore from the previous session, taking India back above the 5 trillion dollar mark.
Is the rally likely to continue?
Analysts are optimistic but cautious. Much depends on crude oil staying low, foreign buying continuing and the US-Iran situation moving towards a settlement rather than stalling.
Disclaimer: This article is for information only and is not investment advice. Markets are volatile, and readers should consult a licensed financial adviser before making investment decisions.
