Sensex Surges 787 Points on US-Iran Ceasefire Hopes; DIIs Anchor Rally with ₹8,089 Cr Buy**

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Market Snapshot

The Indian equity markets witnessed a dramatic turnaround on Monday, reversing early losses to end sharply higher for the third consecutive session. The BSE Sensex jumped 787.30 points, or 1.07%, to settle at 74,106.85, while the NSE Nifty 50 surged 255.15 points, or 1.12%, to close just shy of the psychological 23,000 mark at 22,968.25. The session was characterized by high volatility, with the Nifty swinging 456 points between its intraday low and high.

The rally was broad-based, with the Nifty Midcap 100 and Smallcap 100 indices outperforming the benchmarks, rising 1.52% and 1.29% respectively. Banking and financial services led the charge, with the Nifty Bank index jumping over 2% to close at 52,609.10.

Institutional Flows: Cash Market

Provisional data for April 06, 2026, indicates a continued divergence between foreign and domestic institutional behavior. Foreign Institutional Investors (FIIs) remained net sellers in the cash segment, while Domestic Institutional Investors (DIIs) acted as the primary absorbers of this selling pressure.

• Foreign Institutional Investors (FIIs): Net sold equities worth ₹8,167.17 crore.
• Domestic Institutional Investors (DIIs): Net bought equities worth ₹8,088.70 crore.

Despite the heavy FII offloading, the sheer scale of DII support—fueled by consistent SIP inflows and value buying—prevented a market slide and eventually facilitated the afternoon surge.

Derivatives Market Activity

Activity in the F&O segment reflected a mix of cautious hedging and selective bullish bets. FIIs appeared to reduce their bearish exposure in stock futures while remaining protective in index options.

• Index Futures: FIIs recorded a marginal net sell of ₹78.49 crore.
• Index Options: FIIs were net sellers to the tune of ₹4,459.99 crore, suggesting profit booking or hedging against potential volatility.
• Stock Futures: In a notable shift, FIIs were net buyers of ₹3,199.31 crore, indicating a preference for specific large-cap and mid-cap names.
• Stock Options: FIIs saw a minor net outflow of ₹90.87 crore.

Key Drivers and Outlook

The primary catalyst for Monday's "V-shaped" recovery was a media report suggesting a Pakistan-brokered ceasefire framework (referred to as the "Islamabad Accord") between the U.S. and Iran. This news significantly eased concerns over the Strait of Hormuz and led to a cooling of Brent crude prices, which settled near $108 per barrel.

• Sectoral Performance: Trent Ltd emerged as the star performer, surging nearly 8% on robust Q4 revenue growth. Banking heavyweights like Axis Bank (+3.96%) and HDFC Bank (+2.68%) provided the necessary muscle to the Sensex, offsetting a 3.4% decline in Reliance Industries (RIL), which hit a 10-month low.
• Currency Support: The Indian rupee appreciated by 5 paise to close at 93.06 against the U.S. dollar, further supporting the import-heavy domestic economy.
• Technical Outlook: Analysts suggest that 23,000–23,100 remains a critical resistance zone for the Nifty. A sustained move above this could trigger a fresh short-covering rally toward 23,250. On the downside, 22,500 remains a strong support level. While the ceasefire hopes have provided a temporary reprieve, investors are advised to remain watchful of the Tuesday deadline set by the U.S. administration.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: ** FII DII Stock Market Institutional Investors Nifty Sensex