Diwali gains often last. Will this year’s Sensex rally hold?

What happened: The BSE Sensex rose 0.73% in the week after Muhurat trading on 8 November, following an 8.78% pre-Diwali rally, its biggest in the 1997 to 2026 sample. Key numbers: Pre-Muhurat gain 8.78%, above the prior high of 5.4% in 2002. Post-Muhurat average 1.53%, or 0.72% excluding 2008's 24.93% surge. Median 1.01%. Sensex rose after Muhurat in 19 of 29 years through 2025. Why it matters: Analysts say festive sentiment alone cannot sustain the rally, citing the need for continued foreign cash-equity buying, contained crude, and Q2 earnings that justify valuations.

The BSE Sensex rose 0.73% in the week after Muhurat trading on 8 November, following an 8.78% pre-Diwali rally, its biggest in the 1997 to 2026 sample.

Analysts say festive sentiment alone cannot sustain the rally, citing the need for continued foreign cash-equity buying, contained crude, and Q2 earnings that justify valuations.