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Key gauges extend rally for seventh straight day on strong FII inflows
Nov-06-2026

Indian equity benchmarks registered their seventh day of rally on Friday, defying a global market rout, with the Sensex climbing 1,718 points and the Nifty regaining the 25,000 level, amid strong foreign institutional investors (FIIs) buying during the festive season. FIIs remained net buyers in Indian equities for the fifth straight session on Thursday, purchasing shares worth Rs 14,974.68 crore. Strong corporate earnings and easing crude oil prices also boosted optimism among investors. 

Some of the important factors in trade: 

Trump’s midterm setback may speed up India-US trade deal: Global Trade Research Initiative (GTRI) founder Ajay Srivastava has said US President Donald Trump’s political setback in the November 2026 midterm elections could accelerate India-US trade negotiations, with an agreement potentially concluded within two months. 

Centre strengthens states' fiscal position through advance monthly tax devolution transfer: In a move to strengthen the availability of funds with State Governments ahead of the festive season, the union government has released regular instalment of tax devolution to State Governments amounting to Rs 1,09,019 crore on November 5, 2026. 

Govt clears 12 electronics component projects worth Rs 7,500 crore: IT Secretary S Krishnan said the government has approved a new tranche of 12 applications, worth over Rs 7,500 crore, under the Electronics Components Manufacturing Scheme (ECMS). The latest round of approvals also covers projects related to materials and capital goods, widening the scheme's reach across the electronics supply chain.

India’s agricultural sector may generate 116 GW demand for solar modules: The Indian Solar Manufacturers Association (ISMA), in its report titled ‘the Farms, Building the Factory (PM-KUSUM: Solarising Agriculture and Strengthening Domestic Manufacturing)’, has said that India's agricultural sector could generate demand for an additional 116 GW of solar modules.

Global front: European markets were trading lower, while Asian markets settled mostly lower amid rising concerns the Democratic Party's sweeping wins in the US midterm elections could result in tighter regulation of the AI industry and slowdown in data center expansion. 

Finally, the BSE Sensex rose 1718.01 points or 2.17% to 81,028.02 and the CNX Nifty was up by 493.75 points or 2.01% to 25,030.35.   

The BSE Sensex touched high and low of 81,028.02 and 79,016.05, respectively. There were 29 stocks advancing against 1 stock declining on the index.    

The top gaining sectoral indices on the BSE were Bankex up by 2.19%, Consumer Durables up by 1.78%, Auto up by 0.92%, Metal up by 0.79%, Oil & Gas up by 0.69% while, Capital Goods down by 1.36%, Industrials down by 0.97%, Telecom down by 0.60% and Power down by 0.35% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.73%, ICICI Bank up by 4.10%, Titan Company up by 3.24%, HDFC Bank up by 2.72% and Axis Bank up by 2.51%. On the flip side, Power Grid down by 0.98%, Bharat Electronics down by 0.37% and HCL Technologies down by 0.22% were the top losers.

Meanwhile, Global Trade Research Initiative (GTRI) founder Ajay Srivastava has said US President Donald Trump’s political setback in the November 2026 midterm elections could accelerate India-US trade negotiations, with an agreement potentially concluded within two months. He said the results may push Trump to prioritise trade discussions and expedite the proposed deal, which is reportedly nearing completion despite some remaining differences.

With Democrats gaining control of both chambers of Congress, he believes Trump may seek an early trade agreement with India to demonstrate his influence internationally amid domestic political constraints. He also said the US could continue using the threat of additional tariffs linked to India's purchases of Russian crude oil as a negotiating tool, potentially imposing tariffs of 17-19 per cent instead of the much higher levels discussed earlier. Referring to the proposed Graham Act and the expected 60-day decision period, he said the agreement could be finalised within approximately two months, as part of the period has already elapsed.

However, GTRI cautioned that Trump's political setback may not result in a less restrictive US trade policy. Its latest report raised concerns that the proposed framework requires India to reduce tariffs while the US retains its regular Most Favoured Nation (MFN) duties. It also flagged India's proposed purchase and policy commitments, the possibility of additional US tariffs and potential conflicts with India's World Trade Organization (WTO) obligations. The report warned that the arrangement could weaken India's negotiating position while allowing the US to retain significant tariff leverage. Thus, despite the possibility of faster negotiations, Washington's broader protectionist trade approach is unlikely to change significantly.

Separately, in June, US Trade Representative Ambassador Jamieson Greer led a delegation to New Delhi to meet Union Commerce and Industry Minister Piyush Goyal. The discussions reviewed key elements of the Bilateral Trade Agreement (BTA) and advanced negotiations on the proposed interim deal. In 2025, bilateral goods trade between India and the US stood at $149.42 billion, comprising Indian exports of $103.82 billion and US exports of approximately $45.6 billion. Bilateral services trade totalled $92.23 billion, with India exporting $48.67 billion and importing $43.56 billion worth of services. 

CNX Nifty touched high and low of 25,030.35 and 24,388.05, respectively. There were 46 stocks advancing against 4 stocks declining on the index.      

The top gainers on Nifty were Mahindra & Mahindra up by 5.11%, ICICI Bank up by 4.75%, HDFC Life Insurance up by 3.95%, HDFC Bank up by 3.72% and Titan Company up by 3.42%. On the flip side, Tata Motors Passenger down by 0.58%, Eicher Motors down by 0.56%, Shriram Finance down by 0.30% and Grasim Industries down by 0.02% were the top losers.  

European markets were trading lower; UK’s FTSE 100 decreased 221.67 points or 2.06% to 10,560.99, France’s CAC fell 144.47 points or 1.76% to 8,060.90 and Germany’s DAX lost 588.61 points or 2.24% to 25,736.40.

Asian markets settled mostly lower on Friday tracking Wall Street’s overnight fall driven by a sharp global tech and artificial intelligence selloff following US midterm election results and data center regulation concerns. Further, market participants awaited US October payrolls report, due later in the day, for more cues on a possible rate hike in December, especially as two Federal Reserve officials supported modest and steady interest-rate increases to combat persistent inflation. However, some losses were limited by hopes of a de-escalation in the US-Iran conflict and the possible reopening of the Strait of Hormuz. Japan’s Nikkei fell below the 60,000-mark for the first time since May and entering into bear market territory after a more than 20% fall from its June peak. South Korea’s Kospi index plunged below the critical 5,000-point psychological threshold for the first time in nine months, though it recovered some losses by the closing bell.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,649.18

-40.73

-1.10

Hang Seng

24,481.86

-315.12

-1.27

Jakarta Composite

5,050.43

20.17

0.40

KLSE Composite

1,616.58

-19.28

-1.18

Nikkei 225

57,434.77

-3,643.13

-5.96

Straits Times

5,179.17

-117.08

-2.21

KOSPI Composite

5,059.69

-324.11

-6.02

Taiwan Weighted

39,701.64

-1,873.08

-4.51
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