The market began its Diwali celebrations early, clocking a rally of more than 8 percent in the extended trading week ended November 8. This was its biggest weekly gain since February 2021, with the Nifty 50 reclaiming the 25,000 mark and the Sensex crossing 81,000 for the first time since February 2026, before ending the week slightly below these levels.
The outcome of the US midterm elections revived hopes of de-escalation in the Iran conflict and a softer stance on tariffs. A decline in oil prices to below $100 a barrel, US 10-year Treasury yields slipping below the 5 percent mark, a strengthening rupee, a strong Q2 earnings scorecard and firm GST collections boosted bullish sentiment.
Healthy buying interest from foreign investors in Indian equities in recent sessions, along with hopes of tax relief in the upcoming Union Budget, provided further fuel to the rally. The market also shrugged off an AI-led sell-off in global equities.
Going ahead, the holiday-shortened week is expected to retain a positive bias, supported by the healthy broader market structure, although some consolidation and profit booking cannot be ruled out. Key triggers will include India's inflation data, the remaining September-quarter earnings announcements, inflation readings from the US and China, any diplomatic progress towards resolving US-Iran tensions, and FII activity.
The Nifty 50 rallied 1,933 points, or 8.39 percent, during the week to close at 24,986, while the BSE Sensex surged 6,540 points, or 8.78 percent, to end at 80,999. Both benchmarks extended their uptrend for a second consecutive week. However, the Nifty Midcap 100 and Smallcap 100 indices underperformed the benchmarks, gaining 5.91 percent and 3.81 percent, respectively.