Indian Stock Market Sees Significant Weekly Gains Ahead of Diwali

The Indian stock market has witnessed its strongest weekly performance in over a year, with benchmarks rising more than 8%. Factors such as easing global concerns, positive international cues, and strong domestic fundamentals contributed to this rally. The Nifty index surpassed 25,000, while the Sensex gained over 1,700 points. Notably, foreign institutional investors recorded significant net inflows, marking a shift from previous selling trends. Key sectors like banking and financial services led the charge, with analysts optimistic about the market's resilience despite external pressures. As the market prepares for upcoming economic indicators, investors remain focused on domestic performance and global developments.

By Narendra Chaudhary Nov 7, 2026, 13:42 IST

Market Performance Overview

Representational Image

Mumbai, Nov 7: Indian stock indices experienced their most substantial weekly increase in over a year, surging by more than 8 percent. This rally was fueled by easing global uncertainties, favorable international signals, robust domestic fundamentals, and a notable shift in foreign investor activity.

The Nifty index rose by 8.58 percent throughout the week, climbing 2 percent on the final trading day to settle at 25,030. The Sensex also saw a significant increase, closing up 1,718 points or 2.17 percent at 81,028, marking an 8.82 percent gain for the week.

Foreign institutional investors (FIIs) reported impressive net inflows of around Rs 45,960 crore during this period, indicating a marked change from the previous trend of selling.

Banking stocks were at the forefront of this rally, with the Bank Nifty increasing by approximately 8 percent over the week. Key sectors such as financial services, private banking, real estate, and consumer durables emerged as top performers.

“Dalal Street shone brightly ahead of Diwali, with Indian equities achieving one of their best weekly performances as the Nifty surpassed the 25,000 mark, continuing a winning streak for seven sessions,” noted an analyst.

“Strong Q2 earnings, solid auto sales in October, and robust GST collections set a positive tone, while developments in Washington provided the necessary boost,” he added, referring to the US midterm election results that raised hopes for a reduction in tensions regarding Iran and a more lenient approach to tariffs.

Overall market indices mirrored the performance of the benchmark indices, with the Nifty Midcap100 gaining 5.77 percent and the Nifty Smallcap100 rising by 2.77 percent during the week.

Despite a selloff in AI stocks on Wall Street, the Indian market remained resilient, with investors viewing it as a relatively secure option.

The Thursday downturn in the US wiped out approximately a trillion dollars in market capitalization from S&P 500 companies, leading to significant losses in technology-heavy markets across Asia.

Market sentiment was bolstered by the US Federal Reserve's decision to maintain interest rates and a sharp drop in crude oil prices. WTI crude prices fell from above $90 a barrel to around $75, while Brent crude eased to the $80 range, with both benchmarks experiencing weekly declines exceeding 12 percent.

Upcoming US jobs data and next week's CPI report will influence Fed expectations, as officials continue to indicate potential rate hikes, while investors are also focused on domestic CPI figures and the remaining Q2 earnings reports.