For the first time since January 2021, the market has performed such a miracle, will the success continue even after Diwali?

This week has been no less than Diwali for Indian stock market investors. The market has made a strong comeback after a prolonged decline and selling by foreign investors. Nifty has gained around 8% this week. This is Nifty’s biggest weekly gain since January 2021. Nifty gained 9.5% in January 2021. Now the question is whether this trend will continue even after Diwali?

Due to this boom in the stock market, the wealth of the investors has increased significantly. The total market cap of all companies listed on the Bombay Stock Exchange (BSE) is around Rs. 20 lakh crore increased to Rs. 502 lakh crore has happened. The special thing is that despite the decline in many major stock markets of the world, there has been a boom in the Indian market. Stocks of technology and artificial intelligence (AI) related companies saw heavy selling in US and Asian markets. At the same time, the Indian stock market performed the opposite.

American and Asian markets fell sharply

Shares of technology and AI companies are under pressure in global stock markets. America’s technology-based Nasdaq Composite Index closed down 5.52% on the day at 24,315. This is said to be its biggest one-day decline since April 2025. Because of the decline, the Nasdaq fell more than 10% from its previous month’s record high.

Its impact was also seen on the Asian markets. Japan’s Nikkei index fell nearly 7% shortly after trading opened on Friday. Major stock markets in South Korea and Taiwan also fell more than 8%. Shares of South Korea’s Samsung and SK Hynix also fell more than 10% in early trading. However, later some investors started buying shares at cheap prices, which reduced the market decline.

How is India benefiting?

One of the reasons for the fall in the stocks of technology and AI companies in the US is the concern of investors. They fear that the increasing tightening of regulations in the US could slow investment in data centers and AI. Even after the victory of the Democratic Party in the US mid-term elections, concerns about the regulation of the market have increased. Due to this, the selling in the shares of technology companies intensified. On Thursday, the total value of the American stock market fell by about 2.5 trillion dollars. Indian market can benefit from it. In fact, when foreign investors reduce their investment in expensive AI and technology stocks, they look for investment opportunities in other markets. In such a situation, the Indian stock market is emerging as an alternative for them.

The market was supported by the return of foreign investors

The main reason for the boom in the Indian market is the buying of foreign investors. Foreign Institutional Investors (FIIs) have been steadily selling Indian stocks for the past several months. Because of this, their share in Indian companies came down a lot. But now there is a change in his attitude. According to available preliminary exchange data, foreign investors on Thursday poured in around Rs. 15,000 crore worth of shares were purchased. The purchase made in one day is said to be the largest in a year. At the same time, Domestic Institutional Investors (DIIs) have continued to profit. However, experts believe that the Indian market can remain strong as long as foreign investor buying continues.

Will the stock market rally continue further?

Now the big question before investors is whether this market rally will continue for long or is this just a temporary relief. In a report by ET, global brokerage firm Nomura believes that prospects for increasing foreign investment in India are improving. This is due to good results of Indian companies, lower share prices than before and reduced selling by foreign investors. According to the firm, the Indian market has gained about 6% in dollar terms since October 8. During this period, the Indian market has outperformed markets like South Korea, Taiwan and Nasdaq.

The brokerage firm cited several other reasons as well. These include a possible reduction in long-term capital gains tax for foreign investors, a fall in interest rates around the world and possible steps by the central bank to support the rupee.