Indian Stock Market Sees Significant Gains Post US Elections

On November 5, the Indian stock market experienced a notable surge, with major indices rising nearly 2% due to positive global cues following the US midterm elections and a significant drop in crude oil prices. The Sensex and Nifty both opened higher, led by gains in financial stocks and other sectors. Analysts noted that the market maintained a strong technical setup, although profit booking could occur in the near term. Global market trends and easing geopolitical tensions further supported the bullish sentiment in Indian equities. This article delves into the factors driving these market movements and what investors can expect moving forward.

By Narendra Chaudhary Nov 5, 2026, 12:29 IST

Market Overview

Representational Image

Mumbai, Nov 5: The Indian stock market opened on a positive note on Thursday, with major indices surging approximately 2% each, buoyed by favorable global signals following the US midterm elections and a notable drop in crude oil prices.

The Sensex commenced trading at 78,910.94, reflecting an increase of 1,609.54 points or 2.08%. Similarly, the Nifty index started at 24,378.05, up by 417.45 points or 1.74%.

In the early trading session, financial stocks were at the forefront of the gains, with the Nifty Private Bank index rising over 2%. The Nifty Realty index also saw an increase of 1.86%. Notably, all sectoral indices were in the green.

Other sectors such as Nifty Cement, Nifty Auto, Nifty IT, Nifty Oil & Gas, and Nifty PSU Banks experienced gains of up to 1.82%.

Additionally, sectors like FMCG, consumer durables, metals, media, and chemicals recorded increases ranging from 1% to 1.5%.

Market analysts indicated that the Nifty has successfully maintained its position above the 200-day exponential moving average (EMA) near 23,904, which reinforces a positive technical outlook.

According to analysts, the RSI has risen to 68.55, suggesting strong momentum, although they caution that profit booking in the near term is a possibility. Immediate support is identified in the 24,000-24,200 range, while resistance is anticipated between 24,500 and 24,700.

Experts also pointed out that as the initial reactions to the US election results diminish, concerns regarding ongoing political strife in the US may arise, particularly with President Trump likely to adopt a more confrontational stance.

On Wednesday, foreign institutional investors (FIIs) continued their buying trend for the fourth consecutive session, acquiring equities worth Rs 7,284 crore. In contrast, domestic institutional investors (DIIs) have been reducing their holdings, recording net sales of Rs 3,712 crore for the fourth day in a row.

Global markets contributed to the positive sentiment as US stocks saw significant gains overnight. The Dow Jones Industrial Average surged over 3%, marking its best performance post-midterm elections in more than 40 years. The S&P 500 and Nasdaq Composite also rose by more than 1.4% each as election uncertainties subsided following a decisive Democratic victory in both Congressional chambers.

In the energy sector, Brent crude faced substantial selling pressure, plummeting nearly 10% to settle below the $0-per-barrel mark.

US Treasury yields also saw a decline, with the benchmark 10-year yield falling to around 4.89%, further bolstering risk assets globally.

The overall market sentiment was enhanced by reduced geopolitical tensions concerning Iran and a weaker US dollar, which increased the appetite for risk assets across international markets.