Sensex and Nifty Surge Over 10% Before Diwali Trading

In just seven sessions, India’s two main share indexes climbed more than 10%, their strongest pre-Muhurat run since records began in 1992. The Sensex rose 10.62% and the Nifty 10.27% between October 28 and November 6, ahead of Sunday’s special Diwali trading session. The rise was even bigger than in 2020, when the indexes gained less than 7% over the same period¹.

That 10% climb came as foreign investors bought shares in every session from November 2 to 6, spending a net ₹45,960 crore, according to exchange data. Domestic institutional investors went the other way, selling ₹24,197 crore over those five days. On Friday, the Nifty finished above 25,000 for the first time since February, while the Sensex topped 81,000. The week’s gains were the strongest since February 2021^1,3. The exchanges set aside a one-hour trading window for the festival.

That one-hour window runs from 2:20 pm to 3:30 pm on Sunday, November 8, with trading opening early at 2:05 pm. Muhurat trading marks the start of Samvat 2083, the new year in the Hindu calendar. Many investors make symbolic purchases as part of the Diwali tradition. But a festive session does not promise gains. Analysts say light trading and short-term excitement can make prices jumpy, and warn against buying on impulse after the sharp rally⁹.

Those warnings matter because a strong start in a brief session cannot show whether the market’s rise will last. Analysts point to company earnings, global uncertainty, foreign investor flows and oil prices as factors that could shape what comes next. Investors are being urged to focus on quality companies and long-term goals rather than chase sudden moves. Equity trades made on Sunday are due to be completed Monday, November 9¹⁰.