Indian shares post best week since 2021 as foreign investors return

Indian equities closed at their highest levels in more than eight months on Friday, capping their strongest week since February 2021. Renewed foreign buying and lower crude oil prices helped the market extend its rally even as a sell-off in technology shares pushed major benchmarks in Japan, South Korea and Taiwan sharply lower.

Foreign buying lifts financial shares
The Nifty 50 rose 2.01% to close at 25,030.35, while the BSE Sensex climbed 2.17% to 81,028.02. Both indices rose for a seventh consecutive session. Over the week, the Nifty gained 8.6% and the Sensex added 8.8%.

Foreign institutional investors bought a net 150 billion rupees (£1.2 billion) of Indian shares on Thursday, their largest single-day net purchase in nearly six years. Financial stocks were among the biggest beneficiaries of renewed inflows. The Nifty Financial Services index gained 10.4% over the week, with HDFC Bank up 13.8% and ICICI Bank up 12.4%. The rally was less broad on Friday, when the Nifty Midcap 100 edged lower and the Nifty Smallcap 100 fell 0.82%.

Cheaper oil helps India buck the regional sell-off
Brent crude fell below $100 a barrel on Thursday, easing concerns about the cost of energy imports. India is the world’s third-largest oil importer, so a sustained fall in crude prices can reduce its import bill and ease pressure on domestic inflation. The country’s benchmark share indices also have relatively little direct exposure to the chipmakers and equipment suppliers at the centre of the global sell-off in stocks linked to artificial intelligence.

The weekly rally narrowed India’s performance gap with other emerging markets. The Nifty and Sensex were still down 4.2% and 4.9% respectively for the year, while the MSCI Emerging Markets index was up about 7%. India’s exchanges are due to hold a special trading session on Sunday to mark Diwali.

Newshub Editorial in Asia – 6 November 2026