Indian Markets Surge as US Midterms Shift Congressional Control

Indian equity markets extended a winning streak to six consecutive sessions, culminating in a sharp surge on November 5, 2026. The BSE Sensex jumped 1,403.71 points to 78,689.87, while the NSE Nifty surged 378.85 points to 24,340.40. This followed a more modest gain on November 4, where the Sensex had closed at 77,301.40.

The rally was primarily driven by a significant decline in Brent crude oil prices, which fell from below $102 per barrel to approximately $94 per barrel, a drop of nearly 10%. Market analysts attributed this decline to the removal of a war premium, as investors expect the new US political landscape to encourage negotiations to resolve the US-Iran conflict.

Investor sentiment was further bolstered by the US midterm elections, in which the Democratic Party secured control of both the Senate and the House of Representatives, ending congressional control for President Donald Trump's Republican Party. While the political shift caused initial volatility in global technology stocks, Indian markets benefited from sustained capital injections. Foreign Institutional Investors bought equities worth Rs 7,284.03 crore on Wednesday, adding to approximately $821 million in inflows recorded earlier in November.

Domestic economic indicators also remained positive, with the HSBC India Services PMI rising to 55.8 in October, marking the fastest expansion in four months.