Stock markets hit eight-month high as foreign investors return

Markets Scale Eight-Month Peak

Indian equity benchmarks climbed more than 1% on Wednesday, November 11, 2026, touching their highest levels since February 27. The Nifty 50 advanced 1.25% to 25,358, while the Sensex gained 1.47% to 82,301.1 as of 10:07 a.m. IST. Both indices have risen roughly 10% and 10.5% so far in November, putting them on course for their strongest month since November 2020 and ahead of emerging market peers. MSCI's emerging markets index, by contrast, is down 1.2% this month and headed for a third consecutive monthly decline.

Foreign Investors Return After Exodus

The rally is being driven largely by foreign portfolio investors, who have purchased $5.68 billion of Indian shares in November — their largest monthly buying since September 2024. Indian markets had trailed global peers for much of the past two years as investors favoured AI-linked investments and elevated oil prices weighed on the outlook for Asia's third-largest economy. That calculus appears to be shifting after the U.S. midterm elections, with falling crude prices and caution around AI stocks prompting a rethink. Jefferies joined HSBC and Citi in turning bullish, citing a moderation in the AI trade, softer oil prices, resilient domestic demand and a possible cut in equity taxes as factors that could sustain durable inflows. Lower oil prices have also relieved pressure on the rupee, a key concern for overseas investors.

Why It Matters For Businesses

Broad-based participation matters for corporate readers. Fourteen of 16 major sectors advanced, with small-caps up 1.7% and mid-caps 1.1%. Heavyweight financials rose 1.6%, extending monthly gains to 12.6%; HDFC Bank and ICICI Bank gained 2.1% and 1.4% respectively. IIFL Finance jumped 6.8% after Blackstone agreed to acquire about 16% of the non-bank lender. Stronger sentiment can ease fundraising conditions and improve valuations for companies planning listings or stake sales. However, FPI flows remain sensitive to global risk appe…