India included in top 5 largest stock markets in the world, market value reaches $5.4 trillion

According to a report by The Times of India, India has now once again been included among the 5 largest stock markets in the world. Due to the increase in the total market value, it has reached approximately $5.4 trillion, as a result of which India has overtaken Taiwan. Changes in global investment flows have set India apart from other markets. While foreign investors are returning to Indian equities, Taiwan faced the highest outflow of foreign funds in October, as global selling was observed in AI-linked stocks there.

According to a report by The Hindu, on Wednesday, 11 November, 2026, the two main indices of the Indian stock market, Sensex and Nifty, saw a surge of more than 1%, reaching an 8-month high. Due to falling crude oil prices and caution regarding AI investments, foreign investors have arrived after a long period of two years. During the previous two years, investors were chasing AI-linked investments, and high oil prices had damaged the outlook for Asia's third-largest economy, but now, following the US midterm elections, falling oil prices and AI stocks have changed investor sentiment.

Providing more details on market activity, The Hindu stated that according to data until 10:07 AM, Nifty 50 rose by 1.25% to reach the level of 25,358 and Sensex was up 1.47% at 82,301.1. These figures were the highest levels since February 27. So far in the month of November, Nifty 50 and Sensex have experienced a surge of approximately 10% and 10.5% respectively, which could be the best month since November 2020 and they are outperforming their emerging market peers. Meanwhile, the MSCI emerging markets index has fallen by 1.2% this month and is heading towards its third consecutive month of decline.

In terms of foreign investors, according to a report by The Hindu, foreign portfolio investors bought $5.68 billion worth of Indian stocks in November, which is their largest monthly purchase since September 2024. Jefferies has released a report stating that moderation in the AI trade, lower oil prices, strong domestic demand, and a potential reduction in equity tax could lead to long-term foreign inflows. Jefferies joined HSBC and Citi on this matter.

The decline in oil prices has also reduced pressure on the rupee, which was a major concern for foreign investors. According to a report by The Hindu, on Tuesday, 10 November, 2026, Brent crude futures fell to a two-month low of $89.16 per barrel, as US officials ruled out the need for additional military action against Iran, easing concerns about supply disruptions. On Wednesday, 11 November, it was up 1% at $92.40.

Speaking of sectoral performance, an increase was seen in 14 out of 16 major sectors. On a broad level, small-caps rose by 1.7% and mid-caps by 1.1%. The heavyweight financial sector rose by 1.6%, bringing its monthly increase to 12.6%. HDFC Bank rose by 2.1% and ICICI Bank by 1.4%. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that given the new favorable environment for the Indian market, FPIs are likely to continue buying.

IIFL Finance shares saw a surge of 6.8%, as Blackstone agreed to purchase a stake of approximately 16% in the non-bank lender.

According to reports by Sandesh and Aaj Tak regarding the market's closing figures, the market closed with a rally. Sensex closed at 81,879.40, rising by 772.75 (0.95%) points, while Nifty closed at the level of 25,255.05, jumping by 210.40 (0.84%) points. However, the market witnessed volatility during the day. According to Sandesh, after the morning rally, a slow decline was seen in the market due to profit booking, and Sensex fell by almost 900 points from its day's high and was trading below 82,000. Stocks such as Tech Mahindra, ICICI Bank, TCS, Adani Ports, Infosys, Titan, and HCL Tech were responsible for the decline in Sensex, falling by approximately 1.33%.

According to an Aaj Tak report, there was a major change in the market in the final hours. At one point, the market reached a day high of 25,424.35, but subsequently, it declined and reached a low of 25,095.35. However, in the final moments, there was a massive surge of more than 200 points in Nifty, enabling it to close at the level of 25,255. Strong buying was seen across the entire market, with all sectors except pharma remaining positive. 20 out of the top 30 stocks of BSE were in the green. Mahindra & Mahindra shares saw an increase of more than 5% and Indigo shares saw an increase of 4.37%.

Regarding market capitalization and investor wealth, Aaj Tak stated that BSE market capitalization rose to ₹510.72 lakh crore compared to ₹506 lakh crore on Wednesday. Due to this rally, investor wealth has increased by more than ₹4.50 lakh crore, while investors have earned ₹35 lakh crore during the last seven trading days.

According to a report by Business Standard, tech analysts believe that Nifty could extend this rally to the 25,500 level.

India was the third-largest economy in Asia.