Markets Reclaim $5 Trillion Mark as Four-Day Rally Adds Rs 22.78 Lakh Crore

India's stock market reclaimed the $5 trillion market capitalisation milestone on Wednesday as a four-day rally added Rs 22.78 lakh crore to investor wealth, driven by falling crude oil prices, easing geopolitical tensions in West Asia and improving global market sentiment. The sustained gains helped benchmark indices extend their winning streak, with investors betting on a more favourable economic environment for India amid signs of stabilising foreign fund flows and stronger global trade prospects.

The BSE Sensex rose 347.14 points, or 0.45 per cent, to close at 77,155.62 , while the NSE Nifty 50 gained 96.55 points, or 0.40 per cent, to settle at 24,085.70 . Over the past four trading sessions, the Sensex has surged more than 3,323 points , while the Nifty has advanced over 924 points . The rally pushed the combined market value of BSE-listed companies to Rs 475.12 lakh crore ($5.03 trillion) , marking a significant recovery after Indian equities briefly slipped below the landmark valuation earlier this year.

The biggest trigger for the rally has been the sharp decline in global crude oil prices following a US-Iran peace framework , which eased fears of disruptions in the strategically important Strait of Hormuz . Brent crude fell below the $80-per-barrel mark, reducing concerns over inflation and external sector pressures. For India, which imports more than 80 per cent of its crude oil needs, lower oil prices are viewed as a major positive as they help curb inflation, improve the current account balance, strengthen the rupee and reduce fuel and logistics costs.

The improving geopolitical environment also boosted global risk appetite. Markets across the United States, Europe and Asia traded higher as investors welcomed reduced tensions in the Middle East. Expectations that lower energy prices could support global growth and allow central banks, including the US Federal Reserve , to maintain a stable policy stance further strengthened sentiment.

Another important factor behind the rally was the easing of FII selling pressure . Foreign investors, who have been net sellers for much of 2026 due to concerns over global growth, elevated US bond yields and premium Indian valuations, have recently shown signs of returning as buyers. At the same time, strong participation from domestic institutional investors (DIIs) and retail investors continued to provide stability to the market.

Sectorally, Nifty Consumer Durables emerged as the best-performing index, rising nearly 2 per cent, while Bank Nifty extended its gains to close around 57,500, reflecting strength in financial stocks. Technology shares such as Infosys and Tech Mahindra also advanced, while Trent led Sensex gainers with a rise of more than 7 per cent.

Market sentiment was further supported by optimism surrounding the India-US trade relationship and discussions at the recent G7 Summit , where leaders emphasised supply-chain resilience, critical minerals and diversified manufacturing networks. Analysts believe these developments could create long-term opportunities for India as global companies increasingly look beyond China for investment and production. While challenges remain, the combination of lower crude prices, easing geopolitical risks, improving global sentiment and renewed investor confidence has provided Indian equities with strong momentum and helped restore the coveted $5 trillion valuation mark.