Indian equity markets have recorded their strongest seven-day pre-Diwali performance in 35 years, climbing over 8% in six sessions. The rally is driven by returning foreign inflows and cooling oil prices, though investors are now watching for volatility following a sharp overnight sell-off in US markets.
Indian stocks are closing in on a historic milestone as the Sensex and Nifty record their best seven-day pre-Diwali run in three and a half decades. Over the last six trading sessions, the benchmark indices have surged more than 8%, a move largely fueled by shifting global sentiment.
The turnaround in sentiment has been supported by three key factors. First, foreign investors, who had previously been consistent sellers, have returned to the Indian market, pouring in ₹18,661 crore over the past six sessions. Second, the global energy outlook has eased, with Brent crude oil prices dipping below $95 a barrel. Third, the conclusion of the US midterm elections, where the Democratic Party secured control of both the Senate and the House of Representatives, has provided clarity and reduced uncertainty for global markets.
Challenges and Market Watch
While the recent momentum is robust, investors are entering a period of caution on November 6. The Indian market's reaction today may be influenced by a sharp overnight sell-off in US indices, which often creates volatility in local morning sessions. After a rapid 8% climb, market participants should be aware of the potential for profit-booking as index levels test technical resistance zones near 24,800 to 25,000 for the Nifty.
For investors, the primary monitorable in the coming days will be whether the market can sustain this uptrend despite global volatility. The focus now shifts toward the special Muhurat trading session scheduled for Sunday, November 8, 2026. Traders and long-term investors alike will be observing how domestic indices hold up against these fresh global cues and whether the current optimism translates into stability during the festival period.