Sensex Surges Past 80,300 on Heavy FII Inflows and Pre-Diwali Momentum
Indian benchmark equity indices extended their winning streak to a seventh consecutive trading session on Friday, defying weakness across global markets as pre-Diwali enthusiasm propelled frontline counters to fresh multi-week highs.
The 30-share BSE Sensex surged more than 1,000 points, or 1.29%, to trade at 80,336.05 during afternoon trade. Concurrently, the broader NSE Nifty 50 advanced 211 points, or 0.86%, moving past the 24,700 mark to reach 24,747.40.
Key Catalysts Driving the Rally
The continued run on Dalal Street is underpinned by several domestic and international developments:
- Massive FII Inflows: Foreign institutional investors (FIIs) turned aggressive buyers on Dalal Street, stepping up purchases on every single trading day this week. Provisional data from the NSE revealed that FIIs registered net purchases worth ₹14,975 crore on Thursday alone, marking their highest single-day net investment in recent years.
- Rotation Away from Global AI Equities: Global tech markets came under pressure following the US midterm elections, where the Democratic Party secured control of the US Congress, sparking expectations of tighter regulatory scrutiny on artificial intelligence and big-tech firms. This triggered a widespread rotation of global capital out of richly valued AI assets and back into diversified emerging markets, with India emerging as a major recipient.
- Easing Crude Oil Pressure: International crude oil benchmarks retreated below the $95-per-barrel mark amid hopes of diplomatic de-escalation in West Asia. For India—an economy heavily reliant on crude imports—cooling energy prices ease concerns regarding import bills, corporate input inflation, and the current account deficit.
- Tax Relief Speculation: Investor sentiment on the domestic front has also been lifted by market buzz and anticipation regarding potential rationalisation in long-term capital gains (LTCG) tax and securities transaction tax (STT).
Divergence in Broader Markets
Despite the sharp run-up in frontline indices, the broader market painted a contrasting picture. Investors locked in profits across mid-cap and small-cap segments. The Nifty Midcap 100 slid by over 1%, while the Nifty Smallcap 250 index dropped nearly 1.5%.
Market breadth on the National Stock Exchange remained decisively in favour of declines, with 2,236 stocks retreating against 937 advances, while 99 stocks remained unchanged.
Market analysts note that while the liquidity surge driven by foreign portfolio flows has provided substantial lift to blue-chip heavyweights, investors are adopting a more selective stance in higher-beta broader market counters ahead of the festive season.
