"Sensex today" and "Dow Jones" are both among the most searched money phrases in India this week, and for good reason. On 5 and 6 November 2026 the Sensex added about 3,700 points, while the US Nasdaq fell 5.5% in a single session. This note explains what actually moved the Indian market, what the numbers leave out, and what you pay in tax if you decide to book profit.
The two days in numbers
| Date | Sensex close | Change | Nifty 50 close |
|---|---|---|---|
| 4 November 2026 | 77,301.40 | +383.55 | 23,960.60 |
| 5 November 2026 | 79,310.01 | +2,008.61 (+2.60%) | 24,536.60 |
| 6 November 2026 | 81,028.02 | +1,718 (+2.17%) | 25,030.35 |
Over the two sessions the Sensex gained 3,726 points. The Nifty closed back above 25,000, and the combined market value of BSE-listed companies crossed ₹500 lakh crore for the first time.
What happened in America in between
After Indian markets closed on 5 November, the US market had a very bad day. The Nasdaq Composite fell 5.52%, its worst session in about 18 months, the Dow Jones lost 1,833 points and the S&P 500 fell about 4.4%. Chip stocks led the fall, with Nvidia down about 9% and AMD down about 17%. The trigger was a reassessment of the AI investment cycle and fear of tighter rules on new data centres after the Democrats won both houses of Congress. Indian markets opened flat the next morning and then closed 1,718 points higher.
Reason 1: crude oil fell sharply
After the midterm results, markets began to expect more pressure on the US administration to settle the conflict involving Iran. Brent crude fell about 8.7% in one session to a two-month low. India imports most of its crude, so cheaper oil lowers the import bill, eases inflation and supports the rupee, which strengthened to about ₹94.47 to the dollar on 5 November.
Reason 2: foreign investors bought heavily
Foreign institutional investors bought ₹7,284 crore of Indian shares on 4 November and about ₹14,975 crore on 5 November, the largest single-day purchase in more than a year. Banks and financial stocks such as ICICI Bank and HDFC Bank led the gains on both days.
What the headlines leave out
- Domestic institutions were selling. On 5 November, the day foreign investors bought about ₹14,975 crore, domestic institutions such as mutual funds and insurers were net sellers of about ₹10,444 crore.
- Oil turned again. On 6 November fresh attacks on oil tankers pushed Brent back up to around $97.6 a barrel. The main support for the rally can reverse on one piece of news.
- Foreign money has been leaving all year. Earlier in 2026 foreign investors had withdrawn a record $29 billion from Indian shares. A few strong days do not reverse that trend on their own.
- The year is still negative. On 5 November the Sensex was about 6.9% lower than at the start of the year. Even after 6 November it remained below its 1 January level.
If you book profit: the tax
Selling listed shares or equity mutual funds after a rally creates a capital gain. The rates for 2026 are:
| Holding period | Type of gain | Tax rate |
|---|---|---|
| 12 months or less | Short-term | 20% |
| More than 12 months | Long-term | 12.5% on gains above ₹1.25 lakh in the year |
Cess of 4% and any surcharge apply on top. Securities transaction tax is charged on every sale. If you sell during the Muhurat trading session on 8 November, the same rules apply; our Muhurat trading note covers the timing and settlement.
Large gains also affect advance tax. If your total tax for the year after TDS is ₹10,000 or more, the next instalment is due on 15 December; see our advance tax guide.
What this note is not
This is an explanation of what moved the market, not a recommendation to buy or sell any share. Two strong days in a year that is still negative are a reason to check your plan, not to change it in a hurry.
Frequently asked questions
Why did the Sensex rise when the Nasdaq fell?
On 5 and 6 November 2026 the Indian market was supported by a sharp fall in crude oil after the US midterm elections and by heavy foreign buying, about ₹14,975 crore on 5 November. The Nasdaq fall was driven by concerns about AI and chip stocks, which have little weight in Indian indices.
How much did the Sensex rise on 5 and 6 November 2026?
The Sensex rose 2,008.61 points to 79,310.01 on 5 November and 1,718 points to 81,028.02 on 6 November, a two-day gain of about 3,726 points.
Were domestic institutions buying during the rally?
No. On 5 November 2026 domestic institutional investors were net sellers of about ₹10,444 crore, while foreign institutional investors were net buyers of about ₹14,975 crore.
What tax do I pay if I sell shares after the rally?
Short-term gains on listed shares held for 12 months or less are taxed at 20%. Long-term gains on shares held for more than 12 months are taxed at 12.5% on the amount above ₹1.25 lakh in the year, plus cess and any surcharge.
How Vitt-Marg helps
We handle income-tax returns, capital gains computation, tax planning, GST and ROC compliance for individuals, businesses and companies across Noida, Ghaziabad and Delhi NCR. Send us your broker statements or documents and we will tell you exactly what you owe and how to file it correctly.
General information, current as of 7 November 2026, not advice for a specific case. Due dates and fees change with MCA and CBDT notifications. Check with us before acting on it.