Sensex Gains 350 Points and Nifty Nears 25,350 as Relentless Foreign Inflows Power Morning Rally
Dalal Street witnessed another burst of bullish momentum during morning trade, with the benchmark equity indices advancing firmly. The 30-share BSE Sensex gained over 350 points to trade above the 82,200 mark, while the broader 50-share NSE Nifty 50 pushed towards the 25,350 zone. The rally reflected broad-based strength across financial services, public sector lenders, and automobile counters.
The primary catalyst anchoring the sustained rise has been aggressive and persistent buying by Foreign Institutional Investors (FIIs). Provisional exchange data showed foreign portfolio investors purchased net equities worth ₹12,563.33 crore in the cash market during Wednesday's session alone, marking one of their largest single-day net buying figures of the year. Overseas investors have directed tens of thousands of crores into domestic equities over recent trading sessions, sharply reversing October's heavy net outflows.
Key Factors Driving the Morning Uptrend:
- Relentless FII Accumulation: Sustained foreign inflows have injected fresh liquidity into index heavyweights. The ongoing reallocation from technology-heavy global trades into Indian large-caps has provided strong institutional backing.
- Macroeconomic Cushion from Crude Oil: International benchmark Brent crude traded subdued around $91 to $92 per barrel after retreating from recent peaks. Easing geopolitical supply anxieties have alleviated imported inflation concerns and stabilized the Indian rupee.
- Strong Q2 Earnings Undercurrent: Better-than-expected corporate earnings for the September quarter have provided fundamental valuation support, particularly across state-run lenders and consumer-facing enterprises.
In sectoral action, banking and financial stocks spearheaded the gains. Non-banking financial company heavyweight Bajaj Finance saw active buying interest alongside peers like Bajaj Finserv and Shriram Finance. State-run lenders built on their previous session's sharp advances, with the Nifty PSU Bank index maintaining its outperformance. State Bank of India and Axis Bank also logged modest gains. Conversely, information technology and select pharmaceutical shares witnessed muted price action, acting as a minor cap on headline gains.
Domestic Institutional Investors (DIIs) maintained a cautious stance against the steep foreign buying, remaining net sellers after offloading ₹8,434.53 crore worth of shares in the prior session. Market analysts noted that while domestic mutual funds are prudently taking off-the-table profits at elevated levels, the sheer volume of overseas cash inflows has easily absorbed local selling pressure and kept market breadth positive.
Market participants continue to track key technical thresholds, with the Nifty's immediate resistance pegged in the 25,400 to 25,500 band, while the 25,000 to 25,200 range serves as crucial near-term support against intraday volatility.
