DII Buying Powers Dalal Street Rebound: Sensex Gains 299 Points as Foreign Selling Moderates

Market Snapshot

Indian benchmark indices staged a rebound on Wednesday, September 23, 2026, driven by broad-based buying across metal, financial, and private banking heavyweights, supported by easing crude oil prices and upbeat macroeconomic cues.

The 30-share BSE Sensex climbed 299.17 points, or 0.40%, to settle at 74,828.25 after touching an intraday peak of 74,973.74. The broader NSE Nifty 50 advanced 117.80 points, or 0.50%, to conclude the session comfortably above the key psychological mark at 23,446.80.

The market breadth favored advances, with over 2,800 stocks rising on the BSE against roughly 1,600 declines. The India VIX dropped 6.0% to close around 10.34, signalling a moderation in near-term market anxiety.

Key index performers of the day included:

• Top Gainers: Tata Steel (+3.28%), Bajaj Finance (+3.07%), ITC (+1.77%), UltraTech Cement (+1.73%), and Hindalco Industries.
• Top Laggards: IT majors remained under localized pressure, with HCLTech (-1.10%), Infosys (-1.03%), TCS (-0.95%), and Titan Company (-0.60%) ending in the red.

Institutional Flows: Cash Market

Provisional institutional flow figures for September 23, 2026, revealed a marked decline in foreign selling pressure alongside continued accumulation by domestic funds:

• Foreign Institutional Investors (FIIs/FPIs): Net sellers of equities worth approximately ₹636 crore. This marks a notable deceleration from the aggressive net selling of ₹3,809.99 crore recorded in the preceding session.
• Domestic Institutional Investors (DIIs): Net buyers of equities worth approximately ₹1,036 crore, maintaining their steady support to market liquidity.

Throughout September 2026, DIIs have consistently stepped up to absorb foreign portfolio outflows, supported by persistent domestic systematic investment plan (SIP) flows and mutual fund liquidity.

Derivatives Market Activity

Derivatives positioning ahead of the monthly expiry reflected a positive bias as put writing resumed at critical supports:

• Nifty 50 Open Interest: Substantial open interest additions were observed across the 23,300 and 23,400 Put option strikes, providing an immediate intraday floor. On the Call side, notable open interest build-up remains concentrated between the 23,600 and 23,700 strikes, marking immediate resistance.
• Bank Nifty Positioning: The banking gauge demonstrated stabilizing trends around the 56,000–56,500 zone, with aggressive unwinding of lower call strikes as private lenders witnessed short covering.
• Volatility Index: The India VIX eased to 10.34, encouraging option sellers and indicating limited expectation of immediate downside continuation.

Key Drivers and Outlook

The market’s positive turn was driven by several domestic and international developments:

• Easing Commodity Pressures: Brent crude prices traded steadily under the century mark near $99.50 per barrel, providing welcome relief to India’s import bill and inflation trajectory.
• Robust Macro Fundamentals: Stronger-than-anticipated September flash PMI data reinforced investor confidence in India’s industrial resilience without triggering immediate domestic inflationary spikes.
• Currency Headwinds: The Indian Rupee edged lower by 12 paise to close near 95.74 against the US dollar amid broader greenback strength, though domestic market gains limited steeper declines.

Outlook: Technically, Nifty’s close above 23,400 indicates that the immediate trend has pivoted into a consolidation-to-positive stance. If the index sustains above the 23,300 support zone, it is poised to test intermediate resistance levels at 23,600 and 23,700 in the upcoming sessions.

Tags: FII DII Stock Market Institutional Investors Nifty Sensex