Sensex and Nifty Post Their Best Week Since 2021 on Foreign Buying and Cheaper Crude

Synopsis

The Nifty 50 gained 8.58% in the week of November 2 to 6, closing at 25,030.35, while the Sensex rose 8.82% to 81,028.02. This was the biggest weekly gain since February 2021. The rally was bolstered by returning foreign investors, a sharp decline in crude oil and a fall in yields in the US, which pushed up the market capitalisation of the BSE by around ₹28.7 lakh crore. But one week isn't a trend, analysts warn.

The Nifty 50 rose 1,977.25 points, or 8.58%, during the week to settle at 25,030.35. The Sensex added 6,568.49 points, or 8.82%, to close at 81,028.02. On Friday alone, the Sensex gained 1,718.01 points (2.17%) and the Nifty 493.75 points (2.01%).

The Nifty ended at the highest since February 27. The Nifty had to wait for 14 months for its longest winning streak while the Sensex had to wait for 26 months for the same. Both indices surged on seven sessions. The Sensex began the week at 74,459.53. The market value of BSE listed companies increased by approximately ₹28.7 lakh crore.

What drove it

It was a combination of different things. FPIs started buying up when they had been sellers for a long period. Brent crude declined by over 16% in the week. The US Treasury yields eased and the rupee gained ground. The banking group was also a positive contributor with the Bank Nifty up around 8%, while corporate stocks also performed well.

The primary shift in sentiment was the “sudden switch in FII attitude towards India”, said V K Vijayakumar, Executive Vice President at Geojit Investments on November 4. The Federal Reserve's dovish stance, along with weak global AI trade and large-cap valuations, has contributed so far, he added on Nov. 5.

This was a turnaround rally after a rough period. A Business Standard report said that foreign investors had remunerated a record amount in 2026, with an outflow of more than ₹3-trillion for the calendar year (CY) 2026. In the context of that, the weekly increase from depressed levels is part of the rebound. The figures for the weekly move vary slightly from source to source due to different base calculations, but the figures of 8.58% and 8.82% are reported for the period.

What to watch

Whether foreign purchases are sustainable is the main issue to be asked. The price of crude is largely dependent on the U.S.-Iran settlement which hasn't been finalized yet, and is expected to remain around $98.

More companies are reporting, which will put earnings quality to the test as well. A big move to the upside is not a trend, and the general rule is that investors are only interested in seeing a trend in inflows before a change in direction.