Foreign investors pour nearly Rs 15,000 crore into Indian equities, boosting Nifty

Foreign institutional investors (FIIs) bought a net Rs 14,975 crore of Indian equities on Thursday, marking their biggest single-day purchase in more than a year, according to provisional exchange data. The inflow helped the Nifty 50 close up 2.4% at 24,536.60, reclaiming the 24,000 level, while the Sensex rose 2.6% to 79,310.01, its strongest daily gain in seven months.

Domestic institutional investors (DIIs) moved in the opposite direction, selling shares worth a net Rs 10,445 crore. DIIs had previously provided support during a period of sustained foreign outflows.

The recent foreign buying follows a turnaround that began in mid-October, with FIIs accumulating a net Rs 39,404 crore over 13 trading sessions since Oct. 16. Over the past four sessions, foreign purchases totalled Rs 20,834 crore.

Analysts attribute the shift to easing crude-oil prices, improving global sentiment and better earnings reports from large-cap companies. Banking and automobile stocks led the rally, with the Nifty Bank index up 3.3% and the Nifty Auto index up 4.1%.

Nomura, a global brokerage, noted that Indian equities have risen about 6% in dollar terms since early October, outperforming many major markets. The firm also suggested that a potential reduction in long-term capital-gains tax for foreign investors could further enhance appeal, although no policy change has been confirmed.