Sensex Reclaims 77,500 as Ceasefire Hopes Ignite 900-Point Rally; FIIs Turn Net Buyers

Market Snapshot

The Indian benchmark indices ended the week on a high note, posting their best weekly performance in over five years. On Friday, April 10, 2026, the BSE Sensex closed at 77,550.25, up 918.60 points or 1.20%, while the NSE Nifty 50 settled at 24,050.60, gaining 275.50 points or 1.16%. The rally was broad-based, with the Nifty Midcap 100 and Smallcap 100 indices outperforming the benchmarks by gaining 1.52% and 1.65%, respectively.

The market breadth was significantly positive, with approximately 2,667 stocks advancing against 575 declining on the NSE. Top performers included:

• Asian Paints (+3.81%)
• Eicher Motors (+3.75%)
• Bajaj Auto (+3.29%)
• ICICI Bank (+3.24%)
• Mahindra & Mahindra (+3.13%)

Conversely, the IT sector remained a laggard despite strong Q4 results from TCS, as investors engaged in sectoral rotation. Key losers included Coal India (-4.14%), Sun Pharma (-3.62%), and Infosys (-3.02%).

Institutional Flows: Cash Market

In a notable shift from the persistent selling seen throughout April, provisional data for April 10, 2026, indicates that Foreign Institutional Investors (FIIs) have returned to the buying side in the cash segment. This reversal provided the necessary liquidity to sustain the intraday gains.

• Foreign Institutional Investors (FII): Net buyers of ₹672.09 crore.
• Domestic Institutional Investors (DII): Net buyers of ₹410.05 crore.

This combined institutional buying of over ₹1,000 crore marks a significant departure from the previous session (April 9), where FIIs had offloaded equities worth ₹1,711.19 crore. The return of foreign capital, coupled with consistent DII support, helped the Nifty reclaim the psychological 24,000 level.

Derivatives Market Activity

The derivatives segment reflected a cooling of nerves as the India VIX (Volatility Index) plummeted by 7.72% to settle at 18.85. This sharp decline suggests a reduction in market fear and an expectation of stability in the near term.

• Index Futures: While FIIs have been skeptical in previous sessions, the Friday rally saw a reduction in short positions as the Nifty sustained above its 24,000 support.
• Options Data: Heavy Put writing was observed at the 23,800 and 23,900 strikes, indicating a firming floor for the index. Resistance is now expected at the 24,350–24,400 band.
• Sentiment: The Nifty Bank index outperformed with a 1.98% gain, led by private banking majors, suggesting a "risk-on" approach by derivative traders heading into the weekend.

Key Drivers and Outlook

The market's resurgence was driven by three primary factors:

1. Geopolitical De-escalation: Optimism surrounding the upcoming US-Iran peace talks in Pakistan fueled hopes of a long-term ceasefire. This significantly reduced the "war premium" on global assets.
2. Cooling Commodities: Brent crude prices stabilized in the $94–$96 per barrel range, easing inflationary concerns for the Indian economy.
3. Earnings Momentum: While IT stocks saw profit-booking, the robust 29% QoQ profit jump reported by TCS for Q4FY26 boosted overall confidence in corporate India's resilience.

Looking ahead, the market direction will likely be dictated by the outcome of the weekend's diplomatic negotiations. If the ceasefire holds, the current recovery could extend toward the 24,500 level. However, investors should remain cautious as the IT sector's underperformance and global macro risks continue to provide a cap on runaway gains.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex