Nifty, Sensex Rally Over 2% to Reclaim 25,000 and 81,000 Marks; Bank Nifty Closes at Eight-Month High

Indian equity markets ended Friday's trading session with strong gains, supported by buying in heavyweight financial stocks, sustained foreign institutional investor inflows and positive quarterly earnings. Despite weakness across major global markets, the Sensex and Nifty 50 recorded gains of more than 2%, extending their winning streak to the seventh consecutive session.

The BSE Sensex closed at 81,028.03, rising 1,718.02 points or 2.17%, while the Nifty 50 advanced 493.75 points or 2.01% to settle at 25,030.35. The Nifty reclaimed the psychological 25,000 mark, reflecting renewed buying interest in large-cap stocks.

Banking shares played a significant role in the rally, with the Bank Nifty gaining 2.27% to close at an eight-month high. However, the recovery remained concentrated in heavyweight stocks, as broader market indices ended in the red. 

FII Inflows Provide Strong Support to Indian Equities

Foreign institutional investor activity remained one of the major factors supporting the recent recovery in domestic equities.
On Thursday, November 5, foreign institutional investors (FIIs) recorded net purchases of ₹14,974.68 crore in Indian equities, marking their largest single-day net buying in nearly six years.

In contrast, domestic institutional investors (DIIs) were net sellers, offloading shares worth ₹10,444.54 crore during the session.

Crude Oil Decline and Stronger Rupee Improve Sentiment

The recent decline in international crude oil prices provided additional support to Indian equities. Brent crude slipped below $100 per barrel earlier in the week amid expectations of easing geopolitical tensions in the Middle East following the US midterm elections.
Lower crude oil prices are generally favourable for India, which depends heavily on imports to meet its energy requirements. A decline in oil prices can help reduce the import bill, ease inflationary pressures and lower input costs for several industries.

The domestic currency also witnessed a notable recovery against the US dollar.

The Indian rupee closed at ₹93.91 per US dollar on Friday, November 6, 2026, registering its strongest closing level since April 22. The currency benefited from renewed foreign investment inflows, lower crude oil prices and easing US bond yields.

On a weekly basis, the rupee appreciated by 1.1%, reflecting improved sentiment in the domestic currency market.

M&M Share Price Rally: Strong Q2 Earnings Drive Stock-Specific Buying

Corporate earnings announcements provided additional support to the domestic market rally, with several large-cap companies attracting investor interest following their September-quarter results.

Mahindra & Mahindra emerged as one of the notable performers after reporting strong Q2 FY27 financial results.

The company's consolidated net profit increased 25% year-on-year to ₹4,588 crore, while consolidated revenue rose approximately 25% to ₹57,553 crore.

Growth in the automobile business contributed to the company's financial performance. Following the earnings announcement, Mahindra & Mahindra shares gained 5.11%, making the stock one of the leading gainers among Nifty 50 constituents.

Sectoral Performance: Banking and Financial Services Lead Sectoral Gains

Sectoral performance remained largely positive, with 10 out of 12 indices closing in positive territory.
The Nifty Financial Services index emerged as the top-performing sector, advancing 2.57%, followed by Nifty Bank, which gained 2.27%.

Other sectors also registered gains, although their performance remained relatively modest compared with financial stocks.

Nifty Media was the worst-performing sector, declining 1.52%, while Nifty Energy ended marginally lower by 0.05%.

Midcap and Smallcap Stocks Fail to Participate in Rally

Despite the sharp rise in the Sensex and Nifty 50, the broader market continued to witness selling pressure.
The Nifty Midcap 100 index closed at 60,606.65, recording a marginal decline of 0.02%. Meanwhile, the Nifty Smallcap 100 fell 0.82% to settle at 18,975.05.

Global Markets Remain Under Pressure Despite India's Rally

While Indian benchmark indices recorded strong gains, international equity markets continued to witness significant volatility.
Wall Street experienced a sharp selloff on Thursday, with the Nasdaq Composite declining 5.52% and the S&P 500 falling approximately 4.36%. Concerns surrounding artificial intelligence investments and elevated technology-sector valuations weighed on investor sentiment.

The weakness extended to Asian markets on Friday. South Korea's KOSPI declined around 8%, while Japan's Nikkei dropped approximately 5% during morning trading.

European Markets Trade Sharply Lower

European equity markets were also trading in negative territory, with major benchmark indices witnessing broad-based selling pressure.

Germany's DAX declined 553.67 points, or 2.10%, to trade at 25,776.38. The UK's FTSE 100 slipped 209.08 points, or 1.94%, to 10,573.58.

Meanwhile, France's CAC 40 fell 136.26 points, or 1.66%, to trade at 8,069.11.

US Stock Index Futures Show Mixed Movement

US stock index futures presented a mixed picture, with technology-heavy Nasdaq futures outperforming while Dow Jones futures remained in negative territory.

Dow Jones futures were trading at 51,188, down 427 points or 0.83%. In contrast, S&P 500 futures advanced 22 points, or 0.30%, to 7,405.

Nasdaq 100 futures registered stronger gains, rising 363.75 points or 1.36% to trade at 27,115.75.