Stock market has once again gained wings due to good earnings signals in quarterly results, fall in crude oil prices, rise in rupee against dollar and withdrawal of foreign investors. The Sensex has seen a jump of over 1400 points during the trading session. Due to which Sensex was seen crossing 82,500 points. On the other hand, National Stock Exchange’s main index Nifty saw a jump of around 380 points. Due to this boom, stock market investors have benefited to the tune of Rs.7.29 lakh crore.
The special thing is that after Diwali, the stormy boom that has been seen in the stock market. The stock market has not given up that momentum yet. There was special trading on Diwali and the weather was a little lighter on Monday, but it should be noted that both the days started well. After which a significant drop in crude oil prices was seen on Tuesday. The stock market is benefiting from this on Wednesday. On the other hand, Trump has refused to attack Iran again. In such a situation, geopolitical tension is likely to remain low in the coming days. The effect of which is also being seen in the stock market.
A stormy surge in the stock market
Even after Diwali, the stock market is witnessing a turbulent surge. The benchmark Sensex of the Bombay Stock Exchange was seen at 82,520.40 points with an increase of 1,413.75 points during the trading session. However, the Sensex opened at 82,248.68 points and also hit an intra-day low of 81,969.91 points. The Sensex closed at 81,106.65 points on Monday. However, the Sensex was trading at 81,106.65 points, up 1261 points at 11:55 am.
If we talk about Nifty, there has been a tremendous surge. The Nifty jumped nearly 380 points to 25,424.35 points during the trading session. However, Dopkar is trading at 25,381.20 points, up 328 points at 11:55 am. However, the Nifty opened at 25,337.80 points and also hit an intra-day low of 25,263.80 points. In the week before Diwali, the Nifty saw a gain of around 8 percent.
Due to this reason, the stock market boomed
FII buying continues
So far this month, continued buying by FIIs (Foreign Institutional Investors) has improved market sentiment. Earlier, a massive sell-off earlier this year spooked investors and rattled the market. According to NSE’s preliminary data, before the market closed on Tuesday, foreign investors were ‘net buyers’ of Indian stocks on Monday and bought Rs. More than 7,212 crore shares were bought. Overall, FIIs have been ‘net buyers’ on Dalal Street on a daily basis so far in November. The trend continued for the seventh consecutive session on Monday. Since mid-October, foreign portfolio investors have invested $8.2 billion in Indian stocks, of which $5.8 billion was invested in just six trading sessions in November. This investment marks a big change, as FIIs pulled out about $31 billion from Indian stocks in the first 10 months of 2026.
Strong Q2 results
Analysts believe that the Q2 (second quarter) results of Indian companies have been better than expected, which is another key factor bolstering market sentiment. VK Vijayakumar, chief investment strategist at Geojit Investments, said earnings of Nifty 50 companies rose nearly 24% in Q2, the highest in the last 12 quarters. Due to this the forward PE (price-to-earnings ratio) of Nifty 50 has also come down to a reasonable level. During the July-September quarter of the current financial year, around 181 companies have at least doubled their net profit compared to the same period last year. Quarterly results data compiled by Ace Equity shows that companies in sectors such as banking, metals, pharmaceuticals, energy, consumer business and industrial manufacturing have reported year-on-year (YoY) profit growth of over 100 percent in the second quarter of fiscal 2027.
Rupee strengthened
The Indian rupee opened 0.2% higher at 93.72 against the US dollar, while it last closed at 93.9275. The Indian rupee has become one of the best performing currencies in Asia in the financial year 2027 (FY27). In terms of AI (Artificial Intelligence) related investments, India has emerged as a ‘natural hedge’. This has strengthened the Indian rupee against the South Korean won and the Chinese renminbi, both of which were expected to benefit from AI-based investments. According to experts, India has also benefited from the nearly 20% drop in crude oil prices from recent highs. This has led to a sharp rise in the rupee, which has been among the weakest performing currencies against the dollar in the first two quarters of fiscal 2027.
Softening of oil prices
Oil prices are up slightly today, but well below levels above $100 a barrel so far this year. The softening comes after a statement by US President Donald Trump in which he said that in his view the war with Iran is “almost over.” “Militarily, Iran is almost destroyed. We’re just maintaining the status quo,” Trump said after a meeting with Qatar’s prime minister on Monday. The US president further said that Iran’s power has been “completely crushed”, but he wants to ensure that a long-term solution is found to disable Iran’s nuclear program. Trump said military action does not appear to be necessary, but we are fully prepared and ready to act if the situation changes.
What will the stock market look like in the future?
In just six trading days this month, the Nifty 50 has gained nearly 9 percent. The main reason for this increase is the inflow of Rs. 53,170 crore is a huge purchase. VK Vijayakumar, chief investment strategist at Geojit Investments, said the major change in market sentiment was due to positive global cues for India. However, he also said that the real basis (fundamental basis) for this surge came from Q2 (second quarter) results which were better than expected.
Vijayakumar said that given this new favorable environment for the Indian market, FII buying is likely to continue. This will strengthen core stocks of banking/financials, telecom, capital goods and select auto and pharma companies. This rally still has more power left, and will once again be led by large cap shares.
The analyst further said that Brent crude futures price falling to $92 per barrel is another big relief for India. On the other hand, he warned that the 10-year US bond yield has returned to 5% due to rising inflation in the US and planned hikes in interest rates by the Fed (US Central Bank). Due to this and profit booking by DIIs (Domestic Institutional Investors), this bullishness may moderate a bit.





