Bulls Reclaim 24,100 as FIIs Lead Charge; Reliance and Pharma Power Monday’s Rebound

Market Snapshot

The domestic market witnessed broad-based buying as it successfully shook off the weakness from the previous Friday. The Nifty 50 ended the session at 24,102.90, gaining 89.80 points or 0.37%. Similarly, the BSE Sensex rose by 291.17 points, or 0.38%, to settle at 77,094.07. The recovery was particularly notable in the Nifty Bank, which advanced 0.43% to close at 57,935.60.

Sectoral performance was led by Pharma and IT, which acted as the primary engines of growth. The Nifty Pharma index surged over 1%, with Cipla leading the pack. Meanwhile, the IT sector stabilized after the recent sell-off triggered by global revenue guidance concerns.

• Top Gainers: Cipla (+4.82%), Tech Mahindra (+2.16%), Dr. Reddy's (+1.56%), and Reliance Industries (+1.16%).
• Top Losers: Asian Paints (-2.20%), Titan Company (-1.20%), and Nestle India (-1.05%).
• Market Breadth: Positive, with approximately 2,500 stocks advancing against 1,688 declines.

Institutional Flows: Cash Market

Institutional participation was the highlight of the day, as foreign investors turned aggressive buyers, reversing the cautious stance seen throughout much of June.

• FII Activity: Foreign Portfolio Investors (FPIs/FIIs) recorded their strongest single-day net buying activity since early February 2026. This follow-through buying comes after a net purchase of ₹4,859.07 crore on the preceding Friday, signaling a significant shift in sentiment toward Indian equities.
• DII Activity: Domestic Institutional Investors (DIIs) provided resilient support, though they remained relatively moderate compared to the FII surge. Provisional estimates suggest DIIs continued to absorb supply in defensive sectors like Pharma and Healthcare.

Derivatives Market Activity

In the F&O segment, the Nifty 50 spent most of the session consolidating within the 24,100–24,170 range. Technical analysts noted that while the recovery is firm, the 24,200 level remains a formidable immediate resistance.

• Open Interest (OI): There was a notable build-up in Call writing at the 24,200 strike, while the 24,000–23,900 zone has emerged as a crucial support base for the current expiry.
• India VIX: The volatility index remained relatively stable, cooling off slightly as the market reclaimed key levels, suggesting a reduction in immediate fear among traders.

Key Drivers and Outlook

Several factors converged to drive the Monday rally. Geopolitically, reports of progress in the US-Iran peace negotiations led to a 1.5% drop in crude oil prices, which is a significant positive for India’s macro-stability. Domestically, Reliance Industries dominated headlines after its telecom arm, Jio Platforms, filed its Draft Red Herring Prospectus (DRHP) for a much-anticipated IPO.

Looking ahead, the market's ability to sustain levels above 24,100 will be critical. Investors will be closely monitoring:

• Global Cues: Further developments in US-Iran talks and the performance of the NASDAQ, which has shown renewed strength.
• Commodities: The movement of Brent crude, currently trading below $80 per barrel.
• Monsoon Progress: The advancement of the southwest monsoon, which will dictate the trend for FMCG and rural-oriented stocks in the coming weeks.

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

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