FIIs return to Indian markets, fueling Sensex’s 1,000-point rally and Nifty’s 287-point surge

Dalal Street witnessed a powerful bull run on Monday, with benchmark indices surging sharply as Foreign Institutional Investors (FIIs) returned to buying mode. The S&P BSE Sensex jumped 1,003.06 points, reaching 77,908.57, while the NSE Nifty50 climbed 286.95 points to 23,637.35 as of midday trading.

The rally comes amid a shift in FII sentiment, reversing their months-long selling spree that had seen foreign investors withdraw nearly ₹2.4 lakh crore from Indian equities since late September. On Friday alone, FIIs purchased ₹7,470 crore worth of Indian stocks, marking the highest single-day inflow in four months. Analysts attribute this turnaround to improving domestic economic indicators, attractive stock valuations, and easing concerns over US trade tariffs.

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, the strengthening macros of the Indian economy and reasonable stock valuations have prompted FIIs to re-enter the market aggressively. He added that massive short covering following FII purchases has further amplified the market’s upward momentum.

The biggest contributors to the rally were energy and banking sector stocks, with NTPC leading the pack, rising 4.51%. Kotak Mahindra Bank surged 4%, while State Bank of India (SBI) added 3% to its share price. Other top gainers included Bajaj Finserv (+2.74%) and Axis Bank (+2.67%), reflecting the broad-based optimism in financial stocks.

Despite the overall bullish sentiment, some stocks saw declines. Titan emerged as the biggest laggard, falling 2.58%, followed by IndusInd Bank (-1.84%) and Mahindra & Mahindra (-1.55%). Tech and consumer stocks like Zomato (-1.21%) and Infosys (-0.48%) also posted minor losses.

As investors continue to ride the bullish wave, experts suggest that strong domestic growth prospects, stable inflation, and positive global cues could sustain the upward trajectory in the coming sessions. The return of FIIs, combined with sectoral strength, has once again reaffirmed confidence in Indian equities.