Sensex Surges 2,009 Points as Oil Slump and Foreign Buying Lift Indian Markets

Indian shares extend rally as Brent drops below $95

India's Sensex jumped 2,008.61 points to close at 79,310.01 on Thursday, November 5, 2026, as sharply lower oil prices, renewed foreign investment and expectations of a shift in US policy toward Iran lifted financial markets. The Nifty 50 gained 576 points to finish at 24,536.60.

The Sensex rose 2.60% and the Nifty advanced 2.40%, giving both benchmarks their biggest daily gains in seven months. Indian equities recorded a sixth consecutive session of gains, while the rupee strengthened to its highest level in two weeks.

Brent crude, an international benchmark for oil prices, had fallen $8.98, or 8.7%, on Wednesday to settle at $94.62 a barrel. Thursday's trading extended that retreat, with prices quoted around $93.50 to $94.12 at different times.

The combination matters for India because imported oil must be paid for in foreign currency. Cheaper crude can reduce the country's import bill and ease costs for businesses, while a stronger rupee makes each dollar of imports less expensive.

Investors were also responding to a Democratic victory in the US congressional midterm elections, with the party taking control of the House of Representatives and Senate. Markets anticipated greater political pressure on President Donald Trump over the US and Israeli war with Iran, alongside more resistance to further military action.

Ponmudi R, chief executive of Enrich Money, described the forces behind the advance:

The sharp advance reflects improving global risk sentiment, supported by lower crude prices and renewed institutional buying.

How the trading day unfolded

Indian shares entered Thursday with momentum already building. On Wednesday, the Sensex had gained 383.55 points to close at 77,301.40, its highest closing level in more than two months. The Nifty had added 149.75 points to finish at 23,960.60.

Thursday's gains were visible before regular trading began. GIFT Nifty futures, which give investors an early indication of expectations for Indian shares, stood at 24,295.5 at 8:01 a.m. Both main indices subsequently opened sharply higher.

• Wednesday, November 4: Brent fell 8.7%, while the Sensex and Nifty extended their winning run to five sessions.
• Thursday, 8:01 a.m.: GIFT Nifty futures traded at 24,295.5, pointing toward a stronger opening.
• Thursday, 11:57 a.m.: The Sensex stood near 78,845 and the Nifty near 24,400.
• Thursday afternoon: The Sensex climbed above 79,450 and the Nifty above 24,560 before easing from those levels.
• Thursday's close: The Sensex finished at 79,310.01 and the Nifty at 24,536.60.

The closing levels show that buyers retained much of the day's gains, although both indices finished below their afternoon peaks. The advance also extended a recovery that had already added more than 4,000 points to the Sensex over the five sessions through Wednesday.

Why the oil decline matters for India

Brent's Wednesday settlement of $94.62 compared with $103.60 before the $8.98 decline. For an unchanged quantity of oil, that is an 8.7% reduction in the dollar cost before shipping, insurance and other charges.

Thursday's oil quotations included Brent at $94.12 and US West Texas Intermediate crude at $87.51. Claims that Brent had fallen below $90 also circulated, but without a corresponding contract and timestamp to reconcile them with the more detailed quotations around $94.

Indian airlines, transport operators and manufacturers have a direct interest in lower energy costs. Airlines buy aviation fuel, while many factories depend on fuel for production or moving goods. Paint producers also use inputs linked to petroleum prices.

Household fuel prices depend on taxes, refining costs and pricing decisions as well as crude. The immediate benefit for financial markets was an expectation that pressure on business costs and India's import bill could ease.

Hariselvan Radhakrishnan, founder and chief executive of research advisory firm HST Wealth, said the size and persistence of the oil move would matter:

Unlike the earlier gradual decline (in oil prices), the magnitude of this move can materially improve India's near-term macro and earnings outlook if sustained.

Iran passage exemptions add to hopes of relief

Iran's position on shipping through the Strait of Hormuz added another reason for Indian investors to welcome the oil decline. Ahmad Hayat-Moghaddam, vice chairman of the Iranian parliament's National Security and Foreign Policy Committee, said India, China, Iraq and Qatar had received exemptions from passage restrictions and their tankers could pass through the waterway.

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman. Restrictions there affect the movement of oil cargoes, making access important to countries and businesses that depend on those shipments.

For Indian buyers, the issue involves both price and delivery. A cheaper barrel helps reduce costs, while permission for tankers to pass addresses the practical movement of supplies. No detailed operating conditions or timetable for the exemptions were given.

Investors also anticipated that the US election result might increase pressure to end the conflict. Those expectations helped connect the political news in Washington with falling oil prices and rising Indian shares.

A US political shift lifts global markets

Democrats secured control of both chambers of Congress in the November midterms. The House tally cited 228 Democratic seats, above the 218 needed for a majority in the chamber of 435 members, while Republicans had 139 seats in that tally.

Control of Congress gives the opposition greater influence over legislation, spending and scrutiny of the administration. Trump remains president, but his party's loss of congressional control changes the political conditions in which he pursues his agenda.

US shares rallied on Wednesday. The Dow Jones Industrial Average gained 1,569 points, or 3.03%, in its strongest session in 18 months. The S&P 500 rose 119 points to 7,688, while the Nasdaq added 364 points to reach 25,736. Hong Kong's Hang Seng and Britain's FTSE 100 also traded higher.

Vinod Nair, head of research at Geojit Investments Limited, linked the result to expectations for trade policy and investment moving into developing economies:

The US midterm outcome improved global sentiment, raising expectations of a more measured approach to trade and tariff policies and potentially supporting FII flows into emerging markets,

Foreign institutional investors, often shortened to FIIs, are large overseas investment organisations. Their purchases can support Indian shares by bringing additional money into the market.

Foreign investors return as tax concerns persist

Foreign institutions bought a net Rs 72.84 billion of Indian shares on Wednesday, equivalent to Rs 7,284 crore, marking their fourth consecutive session of net buying. Net buying means their purchases exceeded their sales.

A competing figure of Rs 72,840 crore was also given for the same session alongside the identical dollar estimate of $769.65 million. The rupee totals differ by a factor of ten; Rs 72.84 billion converts to Rs 7,284 crore.

Overseas investors put about Rs 17,235 crore into Indian equities during November's first three trading sessions. Purchases across the week were estimated at about Rs 25,000 crore, providing support after an earlier period of heavy selling.

Finance Minister Nirmala Sitharaman had said on Monday that she would consider concerns raised by foreign portfolio investors about India's capital gains tax framework. Capital gains tax applies to profits made when an investment is sold; the treatment of investments held for longer periods has been a particular concern.

Sitharaman acknowledged that investment conditions had changed and that foreign investors had begun returning:

So I know that circumstances have changed and therefore voices of concern are louder. I quite appreciate that. I'll consider all this,

The immediate support for Thursday's trading came from actual purchases by overseas investors, alongside expectations that their concerns would receive further consideration.

The rupee gains as the dollar weakens

The rupee traded around 94.38 to the dollar on Thursday, with early quotations near 94.32 to 94.35. The currency had recovered from a record low of 96.96 in May.

A lower rupee quotation against the dollar means a stronger Indian currency. At 94.38, buying one dollar costs Rs 2.58 less than at 96.96. For an importer paying a large dollar invoice, that difference can materially affect the bill.

The dollar index, which measures the US currency against six major currencies, fell 0.53% to 101.18 and reached its lowest level in more than a month. A weaker dollar, rising Indian shares and lower crude prices all supported the rupee, while demand for dollars from importers limited its gains.

Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP, described the effect of the US result on currency trading:

The broad bearish momentum triggered by the sweeping Democratic victory in the US midterms continues to dictate terms, as the prospect of looming legislative gridlock in Washington effectively caps any immediate recovery for the dollar,

Gains spread across banks, airlines and smaller companies

Fourteen of 16 major sectors finished higher, showing that Thursday's buying extended beyond a handful of large companies. The Nifty Midcap 100 gained 1.46% and the Nifty Smallcap 100 rose 1.49%.

Private banks led the listed sectoral gains with an advance of 2.55%. Realty rose 1.92%, information technology gained 1.72%, automobiles added 1.66% and consumer durables climbed 1.52%. Capital goods, telecommunications and power shares faced selling during the session.

Bajaj Finance rose 5.33%, Maruti Suzuki gained 4.94% and InterGlobe Aviation, which operates IndiGo, advanced 4.88%. Asian Paints added 4.39%, Mahindra & Mahindra rose 3.89% and Infosys climbed 3.67%.

Across the wider market, 2,994 shares finished higher, 1,453 declined and 200 were unchanged. Rising shares therefore outnumbered falling shares by slightly more than two to one. About 133 shares reached their highest prices in 52 weeks, while 69 touched their lowest levels over that period.

Estimated growth in listed company value ranged from Rs 7.20 lakh crore to Rs 8.20 lakh crore. The lower figure follows from quoted BSE market capitalisation totals rising from Rs 494.42 lakh crore to Rs 501.62 lakh crore. Market capitalisation is the combined stock market value of companies, so these increases represent changes in investment value as share prices move.

Trump Media moves against the broader rally

Trump Media & Technology Group, the parent company of Truth Social, fell more than 11% to a record low of $5.23 even as the broader US market rose. Its shares were down more than 55% for the year.

The company had reported a net loss of $238.1 million on revenue of $1.7 million in the second quarter of 2026. Truth Social's web traffic was down about 30% from a year earlier through September.

Indian investors, meanwhile, ended Thursday with stronger benchmark indices, a firmer currency and cheaper oil. The practical benefit for companies now depends on how long lower energy costs and renewed foreign buying last, the condition identified by the executives assessing the rally.

Key Points

• The Sensex closed at 79,310.01, up 2,008.61 points, while the Nifty finished at 24,536.60, up 576 points.
• Both benchmarks recorded their biggest daily gains in seven months and a sixth consecutive rising session.
• Brent settled at $94.62 on Wednesday after an 8.7% fall and traded around $94 on Thursday.
• Democratic control of Congress encouraged expectations of greater pressure on Trump's Iran and trade policies.
• Iran announced passage exemptions for tankers from India, China, Iraq and Qatar through the Strait of Hormuz.
• The rupee strengthened, overseas investors continued buying and gains spread across most major Indian market sectors.