Indian financial markets logged significant gains on Thursday (November 5, 2026) after global crude oil prices declined by 9%. Benchmark Brent crude prices eased following U.S. President Donald Trump’s fallout in the midterm elections. Crude prices declined for the fourth consecutive day, with Brent falling to $93.82 per barrel.

The benchmark Indian indices, the Nifty 50 and the Sensex, opened near a three-month high as investor sentiment improved amid easing global cues. At 11.57 a.m., the Nifty 50 rose 440 points, or 1.8%, to 24,400, while the Sensex rose 2% to 78,845, up 1,544 points.

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Analysts suggest that the sharp decline in oil prices and the opening up of the Strait of Hormuz are anchoring the Indian markets. Latest developments from Iran show that Tehran exempted Indian vessels from restrictions on passage through the Strait of Hormuz. Iranian parliament’s Vice Chairman of the National Security and Foreign Policy Committee, Ahmad Hayat-Moghaddam, said India, China, Iraq and Qatar were given exemptions and their tankers could pass through the critical waterway.

Rupee strengthens to two-week high as dollar slips

The Rupee also got some relief from the intense pressure of crude trading above $100 a barrel. The domestic currency strengthened to its highest level in two weeks on Thursday (November 5, 2026) following gains in Indian equities and a decline in oil prices. However, dollar demand from importers likely capped the gains for the rupee. The rupee had recovered from the record low of 96.96 against the greenback in May and was trading at 94.38 a dollar, up 0.15% from its previous close.

The decline in the dollar index also helped lift the rupee. The dollar index, which measures the strength of the dollar against a basket of six major currencies, slid to an over one-month low on Thursday following the Democrats’ sweeping victory in the US midterm elections.

“The broad bearish momentum triggered by the sweeping Democratic victory in the US midterms continues to dictate terms, as the prospect of looming legislative gridlock in Washington effectively caps any immediate recovery for the dollar,” Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP, said in a note