DIIs Cushion Dalal Street with ₹1,924 Crore Inflow as Sensex Surges 905 Points Despite Mild FII Outflows

Market Snapshot

Indian equity benchmarks witnessed broad-based buying on Thursday, October 29, 2026, shaking off overseas headwinds to log significant single-day gains. Headline indices opened on a steady footing and extended their upward momentum through the afternoon session, led by heavyweights across banking, financial services, and FMCG sectors.

Key market indices finished the session as follows:

• BSE Sensex: Closed at 74,151.04, surging 905.01 points or 1.24%.
• NSE Nifty 50: Settled at 22,936.75, up 237.90 points or 1.05%.
• Bank Nifty: Rose 642.25 points or 1.18% to end at 54,909.65.
• BSE FMCG: Gained 1.94%, emerging as one of the top sectoral out的大performers of the day.

Market breadth heavily favoured advances, with broad-market indices mirroring the positive sentiment as domestic fund inflows kept liquidity buoyant across both large-cap and mid-cap counters.

Institutional Flows: Cash Market

According to provisional figures from the stock exchanges, the cash segment reflected a familiar tug-of-war between foreign and domestic institutions, with local funds decisively carrying the tape.

Provisional turnover data for October 29, 2026:

• Foreign Institutional Investors (FIIs/FPIs):
• Gross Purchases: ₹13,400.00 crore
• Gross Sales: ₹14,344.00 crore

• Net Outflow: -₹944.00 crore

• Domestic Institutional Investors (DIIs):

• Gross Purchases: ₹18,459.00 crore
• Gross Sales: ₹16,534.00 crore
• Net Inflow: +₹1,924.00 crore

While foreign portfolio managers took a breather and booked profits following recent selective buying, the magnitude of overseas selling moderated notably compared to previous peak selling sessions. Sustained domestic retail participation routed through systematic investment plans (SIPs) continued to give DIIs substantial ammunition to absorb foreign exits comfortably.

Derivatives Market Activity

Activity in the futures and options (F&O) segment pointed to tactical short covering alongside fresh call buying in frontline index contracts.

Key institutional positioning observations include:

• Index Futures: FIIs moderated their net short exposure in index contracts, trimming bearish hedges following the morning breakout above key resistance bands.
• Index Options: Aggressive put writing was observed across the 22,800 and 22,850 Nifty strike prices, establishing a solid support base for upcoming sessions. Meanwhile, unwinding in 22,900 and 23,000 Call options added upward momentum into the closing bell.
• Stock Futures: Select accumulation was noted in private lenders, non-banking financial companies (NBFCs), and defensive consumer staples, where institutional open interest expanded alongside price increases.

Key Drivers and Outlook

The market’s strong upward thrust was steered by a confluence of domestic resilience and sectoral rotation:

• Persistent Domestic Liquidity: Domestic mutual funds and insurance houses remain the backbone of market stability, regularly absorbing foreign pullbacks and preventing extended corrections.
• Earnings Trajectory: Continued corporate earnings releases provided stock-specific triggers, encouraging institutional allocators to rotate funds into high-conviction large-cap names.
• Global Macro Alignment: Muted volatility across crude oil prices and stable global yields provided a benign backdrop for emerging market assets, keeping overseas selling contained to modest levels.

Outlook: Going forward, market participants will closely watch whether FII flows transition back to sustained net buying. Technically, Nifty’s close above 22,900 sets the stage for a retest of the psychological 23,000 threshold, with immediate support now placed in the 22,750–22,800 zone. Traders are advised to maintain a stock-specific approach, leveraging pullbacks to quality counters backed by robust institutional sponsorship.