Sensex Erases US-Iran War Losses, Up 11.8% in 10 Sessions
India's BSE Sensex has gained 8,600 points, or 11.8%, over ten trading sessions and is back at its highest since February 27. Easing war fears, cheaper crude oil and strong earnings drove the rally, while analysts warn of possible pullbacks.
India's BSE Sensex has risen by 8,600 points, or 11.8%, over the last ten trading sessions as of November 11, 2026. The benchmark index has erased its losses from the US-Iran war and is back at its highest level since February 27.
That was the last trading day before the war began on February 28. The Nifty, the National Stock Exchange's main index, has returned to the same level.
Sentiment has turned since late October. Several global brokerages have also upgraded their views on Indian equities in recent days.
What drove the rally
Analysts point to easing geopolitical worries, a sharp fall in crude oil prices, a reversal in foreign investor flows and solid second-quarter corporate earnings. The US midterm setback for the Trump administration has strengthened hopes of a swift end to the war with Iran.
Cheaper crude matters for India, which imports much of its oil. It eases inflation pressure, supports the rupee and improves the current account, the broad measure of the country's trade and income with the rest of the world.
Global investors are also reassessing expensive US technology and artificial intelligence stocks and spreading money into emerging markets, including India. Some hope the government will announce relief from long-term capital gains tax in the coming months.
VK Vijayakumar, chief investment strategist at Geojit Investments Limited, cited the weaker AI trade after the midterms as a plus for India, which is not an AI-driven market. He also pointed to earnings growth of nearly 24% at Nifty 50 companies, a 12-quarter high.
Those two factors turned foreign institutional investors, or FIIs, into aggressive buyers. They have bought Rs 53,170 crore of Indian shares in November so far, Vijayakumar said. Large companies are leading the rally and are fairly valued, he added.
How long it can last
Somil Mehta, head of retail research at Mirae Asset Sharekhan, said the rally's staying power depends on whether corporate earnings keep improving and global uncertainty keeps easing. A fresh rise in crude prices or geopolitical tension could bring volatility, he said.
Some experts see possible pullbacks of 3% to 5% as the market weighs oil, US Federal Reserve and geopolitical news. Most still view the medium-term outlook as constructive.
Sunny Agrawal, head of fundamental research at SBI Securities, said the market has gone through a two-year correction in price and time. "We would not be surprised if benchmark indices soon hit their record highs," he said, citing more reasonable valuations and double-digit earnings-per-share growth expected over the next two to three years.
