Rs 73,46,89,53,00,000 Wealth Created: Sensex, Nifty Records Diwali Bonanza, Rallies 2%; M-Cap Hits $5 Trillion

Sensex and Nifty are in an early Diwali bonanza, recording one of its strongest single-day jump of 2% in 2026. While a host of reasons are backing the bulls in the Indian stock market. There is the decline in crude oil prices and treasury yields, renewed hopes of easing in the US-Iran conflict and the expectation of scrapping of the long-term capital gains (LTCG) tax that could make Indian equities attractive for both domestic and foreign investors. Thursday's rally just before Dhanteras is an indication that the growth momentum is likely to continue in Diwali Samvat 2083. So far, on November 5, 2026, BSE-listed companies have reclaimed above Rs 500 lakh crore, or $5 trillion mark.

Sensex Today, November 5, 2026

At the time of writing, Sensex traded at 78,771.82, registering a growth of 1470.42 points or 1.90% on Thursday. This is near its intraday high of 79,001.19. Sensex also tracked the strong rally of Dow Jones by over 3% overnight.

Top gainers included Indigo, Maruti Suzuki, Bajaj Finance, M&M and Asian Paints with 4% to 5% gains. These stocks are rallying due to Q2 results and hopes of a sales uptick in Diwali festival. During the largest festival of India, demand rises for buying new cars, taking long vacations and redecorating homes.

Other stocks like ICICI Bank, Ultratech Cement, Axis Bank, Eternal, Infosys, Tech Mahindra, Bajaj Finserv, Sun Pharma, L&T and HCL Tech rallied by over 2% to 3.5%. SBI, TCS, Titan, Adani Ports, Tata Steel, Hindustan Unilever, Kotak Bank, and Trent gained by 1% to 2%.

However, some stocks missed on the bull trend. These included NTPC, Power Grid, Bharti Airtel and ITC that have plunged by 0.5% to 1%.

"With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10% fall in Brent crude to around $94 level. This decline is on hopes that a resolution to the US-Iran conflict is likely soon since this conflict and the consequent high crude prices contributed significantly to the Republican rout in the mid-terms," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Nifty 50 Today, November 5, 2026:

At the time of writing, Nifty rallied by 431.40 points or 1.80% to 24,380.15. The index is near its day's high of 24,442.20. Among the top contributors is the Nifty Bank with over 1,300 points or 2.3% gains. Nifty Midcap and Nifty Small-Cap indexes also advanced by 1-2%. India's volatility index is flat.

In percentage terms, the Nifty IT and Auto indices rallied by over 3% each, while Nifty IT, PSU Bank and Private Bank indices zoomed by more than 2% each. Nifty Realty, Consumer Durables, and Metal indices also surged by 1-2%. All sectoral indices were broadly on a bullish note.

Rs 73,46,89,53,00,000 Wealth Created:

The BSE-listed companies' market cap surged to hit the Rs 500.79 lakh crore mark due to the strong rally. This is up by nearly Rs 7.35 lakh crore, or Rs 734,689.53 crore precisely, from the previous session's market capitalisation. In USD terms, India is back to being a 5 trillion dollar market.

Yesterday, the BSE-listed companies' market cap stood at Rs 49,344,339.41 crore.

At present, among the 4,287 stocks listed on BSE, 3,091 of them are in green, and 984 stocks have declined. The other 212 stocks are unchanged. At least 98 stocks have touched new 52-week highs on Thursday, and 170 stocks have hit their upper circuits as of now.

That being said, both the Sensex and Nifty have rallied for the sixth session in a row and have reached to their highest level since August this year.

What Does Democrats Victory Mean For Indian Stocks?

Both the US and Indian treasury yields have dropped marginally to 4.849% and 7.248%. As per Rajani Sinha, Chief Economist, CareEdge Ratings, US Treasury yields have eased marginally following the early election results, reflecting increased investor demand for safe-haven assets. The dollar index has also softened, with a higher risk of a correction in US equity markets, mainly led by AI stocks.

However, beyond the market reaction, Sinha points out looking at sectoral preferences in the democratic victory. As per him, traditionally, Democrats have advocated stronger federal oversight of the technology sector, tighter safeguards and greater data privacy protections. Democratic lawmakers have also raised concerns about the implications of data centre expansion for electricity and water consumption, as well as the potential impact on utility costs.

Further, proposals to tax AI infrastructure and companies have also emerged in the past, partly to compensate for potential losses in payroll tax revenues and finance worker-transition programmes amid AI-driven labour displacement. Any regulatory tightening or higher compliance costs that weigh on US technology and AI valuations could encourage global investors to diversify towards other markets, including India.

Additionally, Sinha said, the initial FPI inflows in November provide some optimism on this front. However, the medium-term outlook carries some underlying risks. The recent rally in longer-dated US Treasuries could prove temporary, with fiscal concerns likely to resurface as the next debt-ceiling confrontation approaches in mid-2027.

However, if a sharp correction in AI stocks occurs instead of a sector rotation, it could trigger recession fears and affect economies globally.

Coming to the crude oil prices, which declined with Brent hitting below $94 per barrel, Vijayakumar said, The decline in crude prices is happening when the Indian economy is showing great resilience and corporate earnings are showing significant improvement.

He also said that the hope that LTCG's tax may be abolished in the coming budget has completely changed the FII's stance towards India. During the last four trading days, FIIs bought equities for Rs 20834 crores in the cash market and, importantly, the buying volume is increasing steadily.

What To Expect Ahead? After the initial reaction to the US election results weakens, there will be concerns surrounding prolonged political conflict in the US, since Trump being what he is, is likely to turn Mr Veto rather than lame duck president, as per Vijayakumar.

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