Indian Stocks Post Best Weekly Gain In Six Years As Foreign Investors Return And Oil Prices Ease

(MENAFN- Zex PR Wire) MUMBAI, India, November 6, 2026, ZEX PR WIRE, Indian equity markets recorded their strongest weekly performance in approximately six years, outperforming several major Asian markets despite a technology-led global selloff. The Nifty 50 and BSE Sensex gained 8.6% and 8.8%, respectively, during the week, supported by substantial foreign institutional investment, lower crude oil prices and renewed interest in domestic financial and industrial companies.

On Friday, the Nifty 50 advanced 2.01% to close at 25,030.35, while the Sensex gained 2.17% to finish at 81,028.02. Both benchmarks reached their highest closing levels in more than eight months, extending their winning streaks.

Foreign Institutional Investors Return to Indian Equities

Foreign institutional investors made purchases worth approximately ₹150 billion, or $1.6 billion, on Thursday, representing their largest single-day net buying activity in nearly six years, according to Reuters.

The inflows marked a notable change after foreign investors had largely avoided Indian equities during much of the year. Increased overseas participation helped support benchmark indices and contributed to gains across several sectors.

Financial stocks were among the main beneficiaries. The financial sector gained 10.4% during the week, while private banking shares advanced 9.1%. HDFC Bank and ICICI Bank recorded weekly gains of 13.8% and 12.4%, respectively.

Lower Oil Prices Support Market Sentiment

The decline in international crude oil prices provided another source of support. India imports a substantial portion of its energy requirements, making international oil prices an important factor for the country's import bill, inflation outlook and corporate cost structures.

Lower crude prices can benefit sectors such as aviation, transportation and manufacturing by reducing some fuel and operating expenses. They may also ease pressure on India's external balance, although the final impact depends on exchange rates, domestic fuel pricing and the duration of the price decline.

The easing of geopolitical concerns following the US midterm elections also contributed to improved market sentiment, although the possibility of further disruption in the Middle East remains.

India Outperforms Technology-Heavy Asian Markets

The Indian market's performance contrasted with losses in several Asian technology markets. South Korea's KOSPI and Japan's Nikkei each declined approximately 6% on Friday, while Taiwan's market fell around 4.5%, as concerns about AI infrastructure investment weighed on semiconductor-linked companies.

India's comparatively limited exposure to the capital-intensive AI infrastructure trade helped its equity market withstand some of the pressure affecting regional technology shares. Indian IT companies also performed differently from chipmakers, as investors assessed the potential benefits of enterprise AI adoption.

Investors Watch Sustainability of the Rally

The sharp weekly advance represents a significant improvement in market sentiment, but investors will assess whether foreign inflows continue and whether corporate earnings support current valuations. Changes in oil prices, global risk appetite and domestic economic conditions will also remain important.

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