Sensex and Nifty Post Best Week in Six Years as Foreign Investors Return

I watch markets every day, and I can tell you this much: a week like this one does not come around often. India’s stock market has just had its best week in almost six years. The Sensex jumped 8.82 percent and the Nifty 50 rose 8.58 percent in the week ending Friday, 6 November 2026. In this article, I will explain what happened, why it happened, who led the rally, what did not rise with it, and what you should watch in the week ahead.

A quick note you can trust: Every number in this article comes from market reports published on 6 and 7 November 2026 by The Economic Times, The New Indian Express, Upstox, Mid-Day and other outlets, with Reuters reporting quoted where I say so. I have not guessed any number. Where a figure comes from provisional exchange data, I say so plainly.

A week Dalal Street will remember

The rally built up day by day, and it ended with a bang on Friday. The Sensex surged 1,718.01 points, or 2.17 percent, to close at 81,028.02. The Nifty gained 493.75 points, or 2.01 percent, to settle at 25,030.35. That Friday close mattered for two reasons. It took the Sensex above the 81,000 mark, and it took the Nifty back above 25,000 for the first time since 2 March 2026.

The weekly totals were even more striking. The Sensex gained 6,568.49 points over the week, a rise of 8.82 percent. The Nifty jumped 1,977.25 points, a rise of 8.58 percent. The Economic Times reports that this was the strongest weekly performance of the Sensex since February 2021, when the index had surged 9.61 percent. The New Indian Express reports that the Nifty’s weekly gain was its biggest in percentage terms in about six years, and its largest ever in absolute points. The rally also added nearly Rs 28 lakh crore to investors’ wealth during the week, as the combined market value of BSE-listed companies rose from about Rs 475.34 lakh crore to around Rs 503 lakh crore.

It was also a steady rally, not a one-day wonder. The benchmarks rose on all five trading days of the week, extending their winning streak to seven straight sessions, the longest in three years. The rally marked a second straight week of gains, and it lifted both indexes about 10 percent from their recent lows. Since 26 October, the Sensex has gained 7,905 points, or 10.8 percent, and the Nifty has risen 2,430 points, also up 10.8 percent.

Foreign investors came back

The biggest reason for the rally was the return of foreign investors. Foreign institutional investors, known as FIIs, had been selling Indian shares for weeks. In the week ending 6 November, they changed direction completely. Reports put their net buying at about Rs 45,960 crore for the week, a huge turnaround from the selling of September and October.

Thursday was the standout day. Provisional exchange data showed overseas investors buying about Rs 14,796 crore, or about 1.6 billion US dollars, of Indian shares in a single session. Reuters reported that it was the largest daily purchase since 24 February 2021. On that day, the Sensex added 2,008.61 points to close at 79,310.01, and the Nifty rose 576 points to 24,536.60. The inflow figure should be read with care, because provisional exchange data can be revised, but the direction is clear. Foreign money that had been leaving India for months came rushing back in one week.

Why did it come back? The reports point to a mix of reasons. Indian company earnings for the second quarter of the 2026-27 financial year have been strong. US bond yields have softened, which makes Indian shares more attractive to global funds. And, as I explain below, the sharp fall in oil prices eased one of the biggest worries hanging over the Indian economy. Together, these factors turned fear into confidence, and the buying fed on itself as the week went on.

Cheaper oil took away a big worry

India imports most of its oil, so the price of crude matters more to its stock market than to almost any other large market. This week, that worry shrank fast. Brent crude fell more than 16 percent over the week, touching a low of 93.22 dollars a barrel before closing at about 97.75 dollars on Friday. According to a Reuters report quoted by Upstox, the fall was the steepest weekly percentage decline since the start of the Covid-19 pandemic, and the biggest in absolute terms in LSEG data going back to 1988.

Cheaper oil helps India in two ways. It lowers the country’s import bill, which supports the rupee. And it eases inflation, which gives the central bank more room to keep interest rates steady. The rupee reflected that relief during the week, settling at 93.91 against the dollar, its strongest close since 22 April 2026. The 10-year government bond yield also fell 23 basis points over the week, its sharpest weekly fall since 2019, before ending Friday at 7.19 percent.

There was a striking contrast with the rest of the world. While Indian shares were rising, global technology shares were falling hard. On Thursday, a sell-off in AI-linked stocks wiped about 2.5 trillion dollars off US stock market value, as I reported in our earlier article on the AI sell-off that sent the Nasdaq down 5.5 percent. India rose while much of Asia fell, and that gap is exactly what attracted foreign funds looking for a safer place to put their money.

Banks led the rally

Not every part of the market rose equally. Banks led the way. The Bank Nifty gained about 8 percent during the week, and the Nifty Financial Services index rose 10.41 percent. Private-sector banks accounted for about 22 percent of the increase in the combined market value of Nifty 50 companies. Among the biggest individual gainers, Shriram Finance led with a rise of nearly 17 percent, followed by Bajaj Finance and Mahindra and Mahindra, which each gained more than 15 percent. HDFC Bank jumped about 14 percent, and Reliance Industries added more than 13 percent.

That pattern makes sense. Banks benefit when foreign money returns, because they are the largest and most liquid shares in the market. They also benefit when oil prices fall and bond yields drop, because both of those trends support lending and lower the cost of funds. When the biggest buyers come back, they buy the biggest and safest names first, and that is what happened this week.

What did not rise with the market

Let me be honest with you. This was not a rally for every investor. The gains were concentrated in large companies, and smaller shares lagged behind. The Nifty Midcap 100 ended the week higher by 5.8 percent, and the Nifty Smallcap 100 rose by only 2.8 percent. That gap matters, because many small investors hold midcap and smallcap shares, and their portfolios did not grow as fast as the headlines suggest.

There is also the question of how far the market still has to go. Even after this huge week, the benchmarks remain roughly 5 percent below their lifetime highs. Reuters also reported that the Nifty and the Sensex are still down about 6.1 percent and 6.9 percent for 2026 as a whole. In other words, this was a powerful recovery, but it has not yet erased the losses of the year. Investors who bought at the top are still waiting to break even.

Our earlier report on the Sensex dropping 548 points as the Nifty fell below 22,400 in October shows how far the market had fallen before this rally began. And our report on gold hitting Rs 1.48 lakh in Delhi before Dhanteras shows that Indian households were already putting money into gold before the stock market turned. The rally is real, but it comes after a painful correction, and it will need more than one good week to prove itself.

What to watch next

The next test comes quickly. Diwali Muhurat trading will be held on Sunday, 8 November 2026, from 2:20 p.m. to 3:30 p.m., marking the start of Samvat 2083. The special session is a tradition, and investors use it to make auspicious first trades for the new year. The mood on Sunday will tell us whether the confidence of this week has survived the weekend.

Beyond that, three things will decide whether the rally lasts. The first is foreign investor flows. If FIIs keep buying next week, the rally has legs. If they stop, the market could give back some of its gains. The second is oil. Brent has fallen hard, but the West Asia conflict is not over, and any new shock could send prices back up. The third is the global technology sell-off. If AI shares keep falling, some of that fear could spill over into India, even though Indian shares rose while others fell this week.

I will keep watching all three. For now, the facts are clear. India’s market has had its best week in six years, foreign investors are back, and oil is cheaper. That is a strong combination. But the gains are concentrated in large shares, smaller shares are lagging, and the indexes are still below their highs. The rally deserves celebration, and it also deserves caution.

Frequently asked questions

How much did the Sensex and Nifty gain this week?

The Sensex gained 6,568.49 points, or 8.82 percent, to close at 81,028.02. The Nifty 50 jumped 1,977.25 points, or 8.58 percent, to close at 25,030.35 in the week ending Friday, 6 November 2026.

Why is this the best week in six years?

The Nifty’s 8.58 percent weekly gain was its biggest in percentage terms in about six years, and its largest ever in absolute points. The Sensex had its strongest weekly performance since February 2021, when it surged 9.61 percent.

How much did foreign investors buy?

Foreign institutional investors bought about Rs 45,960 crore of Indian shares during the week. On Thursday alone, provisional exchange data showed overseas buying of about 1.6 billion dollars, the largest daily purchase since 24 February 2021, according to Reuters.

Why did oil prices matter so much?

India imports most of its oil, so cheaper crude lowers the import bill, supports the rupee and eases inflation. Brent crude fell more than 16 percent in the week, its steepest weekly percentage fall since the start of the Covid-19 pandemic.

Which shares led the rally?

Banks led the way. The Bank Nifty gained about 8 percent and the Nifty Financial Services index rose 10.41 percent. Shriram Finance rose nearly 17 percent, Bajaj Finance and Mahindra and Mahindra each gained more than 15 percent, HDFC Bank jumped about 14 percent, and Reliance Industries added more than 13 percent.

Did all shares rise equally?

No. The rally was concentrated in large companies. The Nifty Midcap 100 rose 5.8 percent and the Nifty Smallcap 100 rose only 2.8 percent. The benchmarks are also still roughly 5 percent below their lifetime highs, and still down about 6 percent for 2026.

What is Muhurat trading?

Muhurat trading is a special one-hour stock market session held on Diwali, when investors make auspicious first trades for the new Hindu financial year. In 2026 it will be held on Sunday, 8 November, from 2:20 p.m. to 3:30 p.m., marking the start of Samvat 2083.

Final thoughts

This was a week that reminded me why markets can surprise even the most careful watchers. Just a month ago, the Sensex was falling below 22,400 on the Nifty, and foreign investors were selling. This week, those same investors poured back in, oil fell by more than 16 percent, and the market posted its best week in six years. The rally is real, and the reasons behind it are real too. But it is also narrow, with small shares lagging and the indexes are still below their highs. I will be watching the Muhurat session on Sunday and the foreign flows next week to see whether this is the start of a lasting recovery or just a very good week. Either way, it is a week that Indian investors will remember.