Indian stocks jump after Diwali break as foreign funds return and crude slides
Nifty 50 topped 25,350 and Sensex rose over 1,100 points in early trade on Wednesday, according to Moody's, as foreign investors returned and oil eased.
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what happened
Indian equity benchmarks surged at the open on Wednesday, the first session after the Diwali Balipratipada holiday. The Sensex climbed more than 1,166 points, or 1.44 per cent, to around 82,273, while the Nifty 50 traded above 25,350, up 1.23 per cent. Aviation, automobile, insurance and telecom shares led the advance, with IndiGo up 3.49 per cent and Mahindra & Mahindra adding 3.17 per cent. Only Hindalco and Nestlé India were lower.
The move has been driven by foreign institutional investors, who have been buying Indian shares heavily this month. According to VK Vijayakumar of Geojit Investments, the Nifty has gained 8.6 per cent in six trading days, with FII purchases reaching ₹53,170 crore so far this month. Nifty 50 earnings growth of nearly 24 per cent in the second quarter, a 12-quarter high, also supports the market. A drop in crude helped too, with Brent near $92 a barrel after falling more than 6 per cent over two sessions.
Risks remain. US consumer prices rose 0.4 per cent month on month in October against 0.3 per cent expected, and core inflation also beat forecasts. Traders now price in at least a 25-basis-point Fed rate hike in December, lifting the 10-year Treasury yield to about 4.99 per cent. Kotak Neo analysts advised against chasing the opening, while Choice Broking flagged overbought conditions with the Nifty's RSI at 77.88.
why it matters
For Indian stocks, foreign inflows and cheaper oil are the main supports right now. Higher US yields and possible Fed tightening could limit the upside, and domestic institutions have been net sellers in recent sessions. India VIX eased to 17.4.
market impact
Indian equities: foreign inflows and cheaper oil support the rally, while higher US yields are a risk.
- Nifty 50 pressure up — foreign buying and strong second-quarter earnings support the index
- Brent pressure down — crude fell as tensions with Iran eased and talks reportedly advanced
- US 10-year Treasuries pressure down — hot inflation and Fed hike bets push yields up and bond prices down
tags
instruments
sources
- Markets surge after Diwali; Nifty crosses 25,350 as FII inflows hit ₹53,170 crore this month — Moody's, 12 November 2026 at 01:43 UTC
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