Nifty jumps 2.01% to 25,030.35 as foreign buying hits record
Key Facts
Indian shares closed sharply higher on 6 November, with the Nifty 50 rising 493.75 points, or 2.01%, to 25,030.35, according to data reported by Moneycontrol. The benchmark's advance came alongside broader gains in large-cap stocks, as the Sensex climbed 1,718.01 points, or 2.17%, to 81,028.02. Foreign investor purchases provided notable support to the market, with preliminary exchange data showing net buying of 14,796 crore rupees. The report said this was the largest net purchase since 24 February 2021. Gains in the two main indexes reflected strength in leading stocks, although most traded shares did not participate in the advance.
Trading data showed 2,452 shares declined, compared with 1,763 that advanced, while 181 were unchanged. The figures point to limited breadth in the session, with the main indexes rising even as a larger number of shares fell. Positive market performance was therefore concentrated in stocks with the heaviest index weightings, while a broad range of companies remained weaker. The report did not provide a sector-specific explanation for the divergence between the indexes and market breadth. Foreign fund flows were among the factors accompanying the rise, along with lower oil prices and a reallocation of global portfolios.
The report attributed some of the support to a sharp drop in oil prices after the U.S. midterm elections, alongside a global selloff in AI-linked stocks that prompted funds to rebalance their exposure. Against this backdrop, U.S. markets gained on 4 November: the S&P 500 rose 1.6%, the Dow Jones climbed 1,569 points, or 3%, and the Nasdaq gained 1.4%. Brent crude fell 8.7% to $94.62 a barrel that day, as concerns about an escalation in the war eased following the U.S. election results. These moves provide international context for the report's account of lower oil prices and portfolio reallocation; they are not figures for the Indian share session on 6 November. The factors cited were linked to global investors' decision to adjust their positions, while direct foreign flows into Indian shares stood out in the session's data.
An analyst at Geojit said foreign investors bought shares worth 35,781 crore rupees during the five trading sessions through 6 November. Strong earnings supported the rally, he said, adding that the market was "likely to remain resilient despite selling and profit-taking by domestic investors." The purchases over five sessions put foreign inflows in a broader context than the net buying recorded on 6 November, while the report said domestic investors sold and took profits. The two indexes also gained more than 8% over six sessions through 6 November, their longest rising streak in a year, according to the report. Even so, the greater number of decliners than advancers in the latest session shows that the indexes' strength did not coincide with a broad market advance.
A portfolio manager at Allianz Global said accelerating earnings growth, valuations below their average and lower foreign ownership made India an "attractive opportunity." By contrast, the Associated Press cited Wall Street analysts warning against overreacting to the U.S. election result, saying the direction of corporate earnings and interest rates could matter more to stocks over the long term. That view places earnings, valuations and foreign ownership among the considerations mentioned by participants in the coverage, alongside the external factors accompanying the session's rise. The report did not identify a later event or specific data release, nor did it provide a numerical forecast for market performance. The coverage therefore documents the gains on 6 November, the recorded flows and the factors it linked to the move.