Indian Markets Rebound Sharply as IT Sector Leads the Charge; FIIs Turn Aggressive Buyers — July 29, 2026

Market Snapshot

The Indian equity markets staged a powerful recovery on Wednesday, outperforming most of their Asian peers. The BSE Sensex jumped 888.68 points, or 1.16%, to settle at 77,654.60, while the NSE Nifty 50 climbed 264.85 points, or 1.10%, to end at 24,250.20. The rally was broad-based, with the Nifty IT index gaining over 2.3% and the Nifty Bank settling at 57,205.90, up 0.79%. Investor wealth increased by approximately ₹3 lakh crore as the total market capitalization of BSE-listed firms reached nearly ₹482 lakh crore.

Institutional Flows: Cash Market

Provisional data from the stock exchanges for July 29, 2026, indicates a strong bullish stance from institutional participants. Both foreign and domestic investors remained net buyers in the cash segment, providing the necessary liquidity to sustain the intraday gains.

• Foreign Institutional Investors (FIIs): Net buyers of ₹2,981.90 crore.
• Domestic Institutional Investors (DIIs): Net buyers of ₹998.00 crore.

This aggressive buying by FIIs marks a significant shift in sentiment, especially as global investors rotated funds out of semiconductor-heavy Asian markets like South Korea into Indian IT services companies.

Derivatives Market Activity

Activity in the derivatives segment reflected the underlying bullish momentum in the cash market. Nifty futures ended the session at 24,303 levels, carrying a premium to the spot price, indicating that traders are positioning for further upside.

• Nifty futures closed with gains of 0.85%, tracking the spot rally.
• India VIX, the market's volatility gauge, declined by over 3% to 12.18, suggesting a reduction in perceived near-term risk.
• Strong call writing was observed at the 24,500 strike price, while the 24,000 level has emerged as a robust support zone for the current expiry.

Key Drivers and Outlook

Several factors contributed to the market's stellar performance today. A major catalyst was the global brokerage Jefferies upgrading the Indian IT sector, which propelled stocks like Infosys (+4.3%) and TCS to the top of the gainers' list. Furthermore, India’s Index of Industrial Production (IIP) data for June accelerated to a 23-month high of over 7%, signaling healthy industrial demand.

• IT Sector Rotation: Investors dumped semiconductor stocks in South Korea (Kospi fell 6%) and shifted to Indian software services as a defensive play.
• Fed Policy Anticipation: Markets are increasingly pricing in a stable interest rate environment following the U.S. Federal Reserve's upcoming policy decision.
• Rupee Strength: The Indian Rupee appreciated by 16 paise to settle at 95.66 against the US dollar, supported by foreign fund inflows.
• Global Cues: While Brent crude prices rose toward $87 per barrel due to Middle East tensions, domestic sentiment remained resilient due to strong corporate earnings and industrial data.

Looking ahead, the market outlook remains cautiously optimistic. While institutional inflows and positive domestic macro data provide a strong foundation, investors will closely monitor the U.S. Fed's commentary and any further escalation in geopolitical conflicts that could impact global energy prices.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex