Indian stocks rally on US midterm stability, Nifty up 5.6% in five sessions

Indian equity markets extended their winning streak this week as investor sentiment brightened following the US midterm elections, with the Nifty50 index climbing 5.6% over five trading sessions. The gains reflected a broader risk-on mood among investors reassured by political stability in the world's largest economy, which typically supports emerging market flows.

Media, metals and realty stocks emerged as the primary drivers of the rally, with these sectors attracting significant buying interest from both domestic and foreign investors. The outperformance in these segments reflected a rotation away from traditional defensive plays as market participants grew more confident about economic growth prospects.

However, the broad-based rally masked divergent performance in the technology sector, where IT shares declined amid lingering concerns about artificial intelligence adoption and its potential impact on traditional IT services. The weakness in tech stocks tempered what might otherwise have been a more pronounced market advance.

Analysts attributed the positive momentum to a combination of factors including easing global recession fears, expectations of moderating interest rate hikes, and a stable political outcome in the US that reduces policy uncertainty. The rally underscored investor appetite for risk assets in both the domestic and international markets.