Bulls Reclaim Dalal Street as Institutional Buying Ignites Post-Election Rally**

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Market Snapshot

The Indian equity benchmarks, Sensex and Nifty50, finished Monday's session in positive territory, supported by buying in heavyweight stocks and election trends that aligned with market expectations. The BSE Sensex advanced 355.90 points, or 0.46%, to close at 77,269.40. During the session, it had surged as much as 997 points before facing some profit-booking. Meanwhile, the NSE Nifty50 rose 121.75 points, or 0.51%, to settle at 24,119.30.

The broader market showed strong participation, with the Nifty Midcap 100 and Smallcap 100 rising 0.63% and 0.70%, respectively. Market breadth remained healthy as advances significantly outnumbered declines.

Institutional Flows: Cash Market

In a notable shift from previous sessions, both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) acted as net buyers in the cash segment on May 04, 2026.

• Foreign Institutional Investors (FIIs): Recorded a net purchase of ₹2,835.62 crore.
• Domestic Institutional Investors (DIIs): Recorded a net purchase of ₹4,764.16 crore.

This synchronized buying provided a solid floor for the indices, especially following the heavy FII selling of over ₹8,000 crore seen in the previous session on April 30.

Derivatives Market Activity

Activity in the F&O segment reflected a mix of hedging and tactical positioning by institutional players.

• FII Index Futures: Net sell of ₹1,271.10 crore.
• FII Index Options: Net buy of ₹4,635.60 crore.
• FII Stock Futures: Net buy of ₹826.40 crore.
• FII Stock Options: Net sell of ₹975.60 crore.

The substantial buying in index options suggests that while FIIs are participating in the rally, they remain cautious and are likely using options to hedge against ongoing volatility.

Key Drivers and Outlook

Several factors converged to drive the market higher today:

• State Election Results: Early trends from West Bengal, Assam, and Tamil Nadu provided a sentimental boost. The BJP's strong showing in West Bengal and Assam was particularly welcomed by the markets.
• Easing Oil Prices: Brent crude prices cooled to approximately $108–$110 per barrel after US President Donald Trump signaled diplomatic efforts to assist ships in the Strait of Hormuz, easing concerns over supply disruptions.
• Corporate Earnings: Robust performance in the auto sector, led by Maruti Suzuki’s record April sales (up 33% YoY), and strong Q4 results from companies like Jindal Steel bolstered investor confidence.
• Currency Pressure: Despite the market rally, the Indian Rupee hit a record low of approximately 95.0 against the US Dollar, a factor that continues to be a monitorable risk for FII flows.

Going forward, the market is expected to remain range-bound with a consolidation bias. Investors will keep a close eye on final election tallies, geopolitical developments in the Middle East, and the remaining Q4 earnings reports.

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

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