Sensex and Nifty record best pre-Diwali rally in 35 years
The benchmark indices surged over 10 per cent during a seven-session rally ahead of the Diwali festival.
The Sensex and Nifty recorded their strongest seven-day pre-Diwali rally in 35 years, according to reports from the Times of India and Business Standard. During the seven trading sessions preceding Diwali, the Sensex gained 10.6 per cent or 7,782 points, while the Nifty rose 10.3 per cent or 2,331 points.
On Friday, the Sensex gained 1,781 points to settle at 81,028, marking its third consecutive session of four-figure point gains. The Nifty closed at 25,030 points. This performance marks the best pre-Diwali run for the Sensex since 1992, surpassing the previous best of 7 per cent recorded in 2020.
The rally was supported by a resurgence of buying by foreign portfolio investors (FPIs). Data from NSDL and BSE shows FPIs bought Indian stocks worth approximately Rs 49,500 crore or $5.2 billion on a net basis. In five of the last six trading days, foreign institutional investors (FIIs) were buyers, purchasing stocks worth Rs 18,661 crore.
Market optimism was driven by the US midterm election results and hopes for a diplomatic resolution to the conflict in West Asia. These factors contributed to Brent crude oil prices dropping over 10 per cent earlier this week to below $95 a barrel. G Chokkalingam, founder and head of research at Equinomics Research, stated that the chances of peace emerging in West Asia and global oil prices correcting are very high.
Despite the rally, analysts at Bernstein noted that the global race to fund AI infrastructure remains a competing magnet for capital. Venugopal Garre, managing director at Bernstein, said that while the Nifty target remains 25,000, long-term trends will be shaped by energy prices, external balances, and India's earnings cycle.