On Thursday, November 5, the Sensex soared 2,008.61 points to 79,310.01, while the Nifty climbed 576 points to 24,536.60. This rally followed falling crude oil prices and returning foreign investors. Vinod Nair said, “The U.S. midterm verdict gave Indian equities fresh momentum,” as markets celebrated the major political shift in Washington.
On Thursday, November 5, the benchmark indices soared, with the Sensex closing 2,008.61 points higher, or 2.6%, at 79,310.01 points. The Nifty ended 576 points up, or 2.4%, at 24,536.60.
The sharp jump was driven by plummeting crude oil prices, returning foreign investors, and the Democrats winning US midterm elections.
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Crude oil prices nosedived as expectations of an end to the war in West Asia increased after the Democrats swept the US midterm elections. Brent crude oil prices fell around 10% to trade below $95 per barrel. US Vice President JD Vance, attributed the losses in the election directly to the conflict with Iran.
“As the threat of geopolitical escalation and energy supply shocks faded, crude prices slumped, and a retreat in U.S. Treasury yields and the dollar took further pressure off India’s inflation outlook and external accounts. Financials and autos were at the forefront, riding a wave of renewed risk appetite as the macro picture brightened,” Vinod Nair, Head of Research at Geojit Investments, said in a note.
US midterm election results have brought a major political shift, with Democrats securing control of both chambers of Congress. The outcome could make it difficult for President Donald Trump to push his policy agenda and give Democrats greater powers to investigate the administration.
“The U.S. midterm verdict gave Indian equities fresh momentum, with the rally gathering pace on hopes that a more restrained Washington could pave the way for de-escalation in the Iran conflict and tariff policies,” Nair added.
Foreign institutional investors (FIIs) have also returned to Indian equities after a prolonged selling period, supported by easing oil prices, firm corporate earnings, and optimism around a potential review of the long-term capital gains tax (LTCG) for foreign investors.
FIIs bought equities worth Rs 20,834 crore in the last four trading days, with the buying volume increasing steadily, according to V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
The top gainers in trade today
Both indices had opened sharply higher and continued to rise throughout the day, taking the gaining streak to six straight sessions.
Bajaj Finance was the best performer, ending the day 7.7% higher. Shriram Finance was up 6.1%, Mahindra & Mahindra rose 5.6%, and Maruti Suzuki India rose 5.5%.
The key losers in trade today
However, the session was not without its share of losers. Some stocks that defied the broader rally and plunged as much as 18% during the day.
Apollo Hospitals was the worst hit in the 50-stock index, closing the day 2.7% lower. ONGC declined 2.1% and NTPC fell 1.6%.
Some other losers across the broader market include key small and midcap names. PI Industries share price plummeted over 18% today, and hit a six-year low of Rs 1,791, on disappointing results for the September quarter. The Cummins India share price plunged around 15% to a low of Rs 4,031.20 per share, after it released earnings for the second quarter of financial year 2027.
Stocks that hit 52-week high today
A total of 99 stocks hit new 52-week highs on Thursday amid the sharp rally in markets. These include Eternal, ICICI Bank, JSW Steel, Kotak Mahindra Bank, Lenskart, Marico, Shyam Metalics and Energy, and TVS Motor.
43 stocks plunge to 52-week lows
However, 43 stocks also hit their 52-week low during the day, including Aptus Value Housing Finance India, Kirloskar Oil Engines, and DRC Systems India.
What lies ahead?
Shrikant Chouhan, Head Equity Research at Kotak Neo outlined the key levels to watch out for next.
“On the higher side, the rally could continue till 24700–24800/79800-80000. On the flip side, below 24350/78700, the correction could continue till 24250–24200/78500-78200,” Chouhan said.
Geojit’s Nair said the stars appear to be aligned for now, with crude oil, yields, earnings and foreign flows all turning in the market’s favour and keeping the near-term bias constructive.
“Yet the rally’s staying power will ultimately depend on whether breadth remains strong and whether the hope of de-escalation translates into concrete progress on the ground.”