Sensex, Nifty zoom over 10%; record biggest-ever pre-Diwali rally in 35 yrs
Business Standard · Puneet Wadhwa, Rex Cano ·
The BSE Sensex and NSE Nifty rallied 10.6% (7,782 points) and 10.3% (2,331 points), and in the process recorded the best 7-day pre-Diwali rally since the inception of Muhurat trading on the NSE in 199
The BSE Sensex and NSE Nifty rallied 10.6% (7,782 points) and 10.3% (2,331 points), and in the process recorded the best 7-day pre-Diwali rally since the inception of Muhurat trading on the NSE in 199
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The Indian stock markets on Friday recorded their strongest seven-day pre-Diwali rally in 35 years, with both the benchmark indices surging over 10 per cent in the run-up to the festival, according to data since the inception of the National Stock Exchange (NSE) Muhurat trading session in 1992. The Sensex rallied past the 81,000-mark, gaining as much as 10.6 per cent (7,782 points), while the Nifty crossed the 25,000-mark, up 10.3 per cent (2,331 points) in the seven trading sessions preceding Diwali. On Friday, the Sensex and the Nifty surged over 2 per cent each to settle at 81,028 and 25,030, respectively. The previous best pre-Diwali seven-day performance for the Sensex was recorded in 2020, when it gained 7 per cent, followed by a 6.2 per cent rise in 1993. ALSO READ: Sensex, Nifty end higher in 8 of 10 Muhurat trading sessions The optimism back home, analysts said, was triggered initially on reports that the government could rethink the treatment of long term capital gains (LTCG) and the short term capital gains (STCG) taxes in the upcoming budget scheduled for February 2027. That apart, the Democratic Party's sweeping victory in the US midterm elections ignited hopes of a resolution to the West Asia conflict that started earlier in 2026. As a result, Brent crude oil prices dropped over 10 per cent earlier this week to below $95 a barrel (bbl) and softening of the US 10-year treasury yield to 4.8 per cent levels from nearly 5.3 per cent in May 2026. The optimism in domestic markets, especially after defeat of Donald Trump in US midterm election has lifted the markets besides domestic cues, believes G Chokkalingam, founder and head of research at Equinomics Research. "Chances of peace emerging in West Asia, and therefore global oil prices correcting substantially going ahead are very high. Donald Trump may not be able to pursue any aggressive measures on trade front, especially against India. Oil may fall further, which might boost rupee. As a result, FPI inflows into domestic equity may restart in the short-term. It looks like market will carry on this optimism at least for next few weeks," he added. ALSO READ | Sensex seen at 87,000, Nifty at 27,000 by next Diwali: Experts For the Nifty, the previous best was a 7.5 per cent gain in 1993, followed by a 6.8 per cent rise in 2020.
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