Indian stocks jump nearly 9% in a week, Nifty posts best gain in six years

what happened

According to Moody's, Indian equities extended their winning run to seven straight sessions. The Nifty50 gained 8.58% over the week and reclaimed the 25,000 mark, while the Sensex closed above 81,000. It was the index's biggest weekly percentage gain since January 2021 and its largest ever in absolute terms.

Several factors supported the market: the outcome of the US midterm elections, buying by foreign institutional investors, a drop in Brent of nearly 16% over the week to around $98 a barrel, and a sell-off in US technology stocks on fears of tighter regulation of AI infrastructure. The rupee gained about 0.5% and moved above 94 per dollar.

why it matters

Two channels matter for investors here. Lower crude eases pressure on India, which imports roughly 85% of its oil needs, while returning foreign capital strengthens the rupee and demand for local shares. The durability of the rally will depend on whether non-resident buying continues and how talks over the Strait of Hormuz develop.

market impact

Indian stocks and the rupee: foreign inflows and cheaper crude support the market

• ▲Nifty50 pressure up — inflows from foreign investors and a rebound after a long sell-off
• ▼Brent pressure down — hopes of a diplomatic settlement reduce the risk of supply disruptions
• ▲Indian rupee pressure up — non-resident share purchases and better capital flows

instruments