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Stock market rally: The Indian stock market extended its winning streak to seven consecutive sessions on Friday, November 6, defying a sharp global sell-off led by technology stocks. Improving sentiment following the US midterm election results, a steep fall in crude oil prices and renewed foreign institutional investor (FII) buying have supported domestic equities.
The Sensex rose 734.66 points, or 0.9%, while the Nifty advanced 166 points, or 0.7%, on Friday. In the previous session, the Sensex had surged 2,008 points, or 2.60%, to close at 79,310, while the Nifty gained 576 points, or 2.40%, to settle at 24,536.
In the 2 sessions combined, Sensex has jumped over 2700 points while Nifty has added over 700 points. Investors added more than ₹4 lakh crore to their wealth over the preceding two sessions.
Moreover, with the latest gains, both benchmark indices have rallied around 9% over seven sessions.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, India's relatively limited exposure to the artificial intelligence trade could help it outperform other markets amid the global technology sell-off.
“The bloodbath in the US markets will impact most other markets today, but India is likely to be the least impacted. The big rout of 5.6% in Nasdaq was triggered on concerns of big slowdown in data centre spending since the Democrats are opposed to massive data centre investment. This tech rout, particularly the sharp deceleration in AI trade will turn out to be beneficial for India,” said Vijayakumar.
It is important to recognise the fact that this ongoing rally has fundamental support from impressive earnings growth which has come better-than-expected, he added.
The US midterm election results have emerged as an important trigger for improving global market sentiment. Democrats secured control of both chambers of Congress, prompting investors to bet that the outcome could accelerate efforts to end the US-Israeli war on Iran.
Any de-escalation in the Middle East could ease geopolitical tensions and reduce the risk of disruptions to global energy supplies. The conflict has been a major source of uncertainty for financial markets because of its potential implications for crude oil prices, inflation and global economic stability.
The possibility of a more stable geopolitical environment has therefore encouraged investors to reassess their exposure to risk assets, supporting sentiment towards Indian equities.
The sharp correction in crude oil prices has provided another important boost to the domestic market. As a major oil importer, India is particularly vulnerable to higher energy prices, which can increase its import bill, put pressure on the rupee and fuel inflation.
Brent crude fell nearly 9% in the previous session as investors weighed the possibility of an easing in the Iran conflict following the US midterm election results. Although prices rebounded in the subsequent session and traded near $100 a barrel, they remained down around 15% for the week, on track for their steepest weekly decline since April 2020.
Vijayakumar said the fall in crude prices was particularly positive because it coincided with improving domestic economic resilience and corporate earnings. He also highlighted expectations of a possible reconsideration of the LTCG tax in the next Budget as another factor improving foreign investor sentiment.
The return of FIIs has been a major source of support for domestic equities after a prolonged period of selling. FIIs have poured more than $3 billion into Indian stocks over 10 sessions through Tuesday, according to the supplied market data.
The buying gathered pace on Thursday, when foreign investors purchased equities worth around ₹15,000 crore, marking their biggest single-day net purchase in nearly six years.
Vijayakumar noted that FIIs had bought equities worth ₹35,781 crore over the preceding five trading sessions.
“It is important to note that the FIIs have bought equities for ₹35781 crores in the last five trading days. Despite selling and profit booking by DIIs the market is likely to remain resilient since FII buying will continue in the changed global market construct,” said the expert.
Analysts believe investors should focus on companies that stand to benefit from lower crude oil prices rather than chase the broader market rally.
Vinit Bolinjkar, Head of Research at Ventura, said the Democrats' victory could support Indian equities by improving risk sentiment and reducing uncertainty around abrupt US policy changes.
"The Democrats’ sweep of both chambers of Congress could be a near-term positive for Indian equities, as checks on abrupt US policy changes improve risk sentiment. The clearest opportunity is lower oil," Bolinjkar said.
He identified IndiGo, Asian Paints and CEAT as potential beneficiaries of lower crude prices because of their fuel- and crude-linked cost structures. BPCL and HPCL could also benefit from improved marketing margins. However, sustained lower oil prices could weigh on the realisations of upstream producers ONGC and Oil India.
Bolinjkar cautioned that Indian export-oriented sectors should not assume immediate relief from US policy changes. Textiles and IT services companies such as TCS and Infosys could remain exposed to tariff and immigration restrictions, while pharmaceutical exporters face uncertainty over US pricing policies.
Meanwhile, Vijayakumar pointed out that a significant factor which investors should understand is that this rally is driven by large-caps which had become attractively valued.
"Note that yesterday while the Sensex rallied 2.6%, the Smallcap 100 index crawled by a measly 0.67%. It is evident where money is going. For financials, tech and auto stocks, there is more upside," he said.
For investors, the focus should remain on selective opportunities rather than indiscriminate buying after the sharp rally. Crude oil prices, the sustainability of FII inflows and corporate earnings will be key factors to watch.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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