Markets Extend Winning Streak to Third Day; DIIs Act as Shock Absorbers Amid Marginal FII Sell-off

Market Snapshot

The Indian stock market maintained its upward momentum on Tuesday, with the BSE Sensex and NSE Nifty 50 both ending in the green. The 30-share BSE Sensex climbed 208.17 points, or 0.25%, to settle at 84,273.92, while the 50-share NSE Nifty rose 67.85 points, or 0.26%, to finish at 25,935.15. The broader markets also participated in the rally, with the Nifty Midcap and Smallcap indices gaining 0.49% and 0.38%, respectively.

• Top Gainers: Eternal (+5.18%), Tata Steel (+2.98%), ONGC (+2.09%), and Mahindra & Mahindra (+1.84%).
• Top Losers: HCL Tech (-1.81%), Bajaj Finance (-1.79%), and Dr. Reddy's (-1.53%).
• Sectoral Performance: Nifty Media led the charts with a 2.4% surge, followed by Nifty Auto at 1.37%. In contrast, Nifty Pharma and PSU Banks faced minor selling pressure.

Institutional Flows: Cash Market

The provisional data for February 10, 2026, highlights a divergence between domestic and foreign institutional activity. Domestic Institutional Investors (DIIs) continued their role as the market's primary support system, offsetting a slight cautious stance from foreign peers.

• NSE Cash Segment: DIIs were net buyers of ₹1,538.63 crore (Buy: ₹14,179.70 cr, Sell: ₹12,641.07 cr).
• FII Cash Segment: FIIs turned net sellers on the NSE, offloading shares worth ₹352.55 crore (Buy: ₹15,156.63 cr, Sell: ₹15,509.18 cr).
• Combined Data: Across all exchanges (NSE, BSE, and MSEI), DIIs recorded a net inflow of ₹1,174 crore, while FIIs posted a marginal net buy of ₹69 crore.

Derivatives Market Activity

In the derivatives segment, FII positioning remains cautiously optimistic despite the mild selling in the cash market. Analysts noted a strategic shift in institutional positions as the Nifty approached the psychological 26,000 mark.

• Index Futures: FIIs saw an increase in long positions in index futures, accompanied by a visible reduction in short positions.
• Volatility: The India VIX fell by 4.30% to 11.67, indicating a decrease in market fear and supporting trend-based trading strategies.
• Options Sentiment: Heavy call writing was observed at the 26,000 and 26,100 strike prices, suggesting these levels will act as immediate resistance.

Key Drivers and Outlook

The primary catalyst for the day’s performance was the growing optimism regarding an interim trade framework between New Delhi and Washington. Furthermore, positive sentiment from Asian peers—including a rally in Japan’s Nikkei—provided a tailwind for domestic indices.

The near-term trajectory of the market is expected to hinge on the remaining Q3 earnings reports and upcoming macro data. Technically, the Nifty faces a stiff hurdle at 26,000. A sustained move above this level could trigger a fresh leg of the rally toward 26,200. Conversely, immediate support is placed at 25,800, with a stronger base established around the 25,500 zone.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex