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BUSINESS & TRADE NOVEMBER 13, 2026 | The Indian Eye 38

How Indian stocks staged

sharp recovery after weeks of bleeding

Declining crude oil prices, easing geopolitical concerns, renewed foreign investor interest and a

reduction in bearish positions are driving a revival in domestic equities, with analysts expecting the
benchmarks to reclaim their previous lifetime highs

OUR BUREAU

Mumbai / New Delhi
ndian equity markets are staging a strong come-
back after weeks of sustained pressure, with
Ibenchmark indices extending their gains for the
fifth consecutive session as falling crude oil prices,
improving global sentiment and renewed buying
interest from domestic and foreign investors help
restore confidence.
The recovery gathered significant momentum
on Thursday, with the BSE Sensex surging 2,008.61
points, or 2.60 per cent, to close at 79,310.01, while
the NSE Nifty 50 jumped 576 points, or 2.40 per
cent, to settle at 24,536.60. The rally has brought
both indices closer to their previous lifetime highs.
The Sensex is now 6,849 points, or approximately
7.95 per cent, below its record of 86,159.02, reg-
istered on December 1, 2025. The Nifty is 1,822
points, or around 6.91 per cent, below its previous
peak of 26,358.25, achieved on January 5, 2026.
Market experts believe the recovery reflects a
combination of improving international conditions
and changing investor positioning, rather than
merely a temporary bout of bargain hunting.
Jay Thakkar, Head of Derivatives and Quant Brokers react as Sensex rallies to record high on Thursday (ANI)
Research and Vice President at ICICIDirect, ex-
pressed confidence that both benchmark indices could provide further support to Indian equities. auto, metals, realty and oil & gas, alongside midcap
could reclaim their previous records and move into Another important indicator is the reduction and smallcap indices rising over 1 per cent, indicates
uncharted territory. “Your question is whether the in bearish positions taken by foreign institutional improving risk appetite,” he said.
Nifty or Sensex, or both, will hit lifetime highs going investors (FIIs). Their short positions in index fu- All NSE sectoral indices except Nifty IT ended
forward. The answer is definitely yes,” Thakkar said. tures declined from 3.10 lakh contracts to 1.86 lakh Wednesday in positive territory. Nifty Media surged
He identified the decline in crude oil prices as one contracts as of November 4, a reduction of approxi- more than 5 per cent, while Realty and Metal
of the principal factors behind the improving market mately 1.24 lakh contracts. gained 2.80 per cent and 2.40 per cent, respective-
outlook. Brent crude, which had recently climbed “FIIs have drastically reduced their short posi- ly. Automobile, pharmaceutical, consumer durables
to USD 117-118 per barrel, has fallen below USD tions in index futures. These positions were as high and FMCG stocks also registered gains.
100 and is currently hovering around USD 94-95. as 3.10 lakh contracts but declined to 1.86 lakh con- The decline in energy prices could also reduce
Crude prices declined for the fourth consecu- tracts as of November 4. This is also a positive indi- inflationary pressures and ease the burden on the
tive day on Thursday, following a steep 9 per cent cator,” Thakkar said. Reserve Bank of India (RBI), potentially reducing
fall in the previous trading session. The retreat has The reduction suggests that foreign investors the need for aggressive monetary tightening.
eased concerns for India, which depends heavily on are becoming less pessimistic about the near-term Rajeev Sharan, Head of Research at Brick-
imported energy and remains particularly vulnera- market outlook, potentially creating room for fur- work Ratings, said international developments had
ble to fluctuations in international oil prices. ther buying. helped reverse some of the pressures faced by Indi-
The decline in oil prices has coincided with Broader markets outperformed the bench- an markets. “What changed today is that US mid-
changing geopolitical expectations following elec- marks, with the Nifty Midcap 100 rising 1.55 per cent term election trends and a retreat in global oil are
toral setbacks suffered by US President Donald and the Nifty Smallcap 100 gaining 2 per cent. The doing the heavy lifting that the RBI had to do alone
Trump’s Republican Party in this week’s Congres- Nifty 100 advanced 0.82 per cent, indicating that the in October,” he said.
sional elections. The results have fuelled specula- recovery was spreading beyond large-cap stocks. For investors who have endured weeks of fall-
tion that growing political pressure could encourage Vikram Kasat, Chief Business Officer – Advi- ing valuations and volatility, the latest rally offers
the Trump administration to seek a negotiated set- sory and Dealing at PL Capital, said broad-based renewed optimism. However, the durability of the
tlement to end the ongoing conflict with Iran. buying across sectors reflected improving risk ap- recovery will depend on whether falling oil prices,
Thakkar said falling crude prices, declining US petite. “Indian equities extended their rally for the improving foreign investor sentiment and stronger
bond yields and improving geopolitical expectations fifth consecutive session. Broad-based buying across domestic earnings can sustain the momentum.

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