Indian Markets Rally as Foreign Investments Surge
The Sensex and Nifty indices reached their highest levels in eight months, driven by strong foreign fund inflows and declining crude oil prices.
The domestic benchmark indices Sensex and Nifty opened at their highest levels in eight months, buoyed by significant foreign fund inflows and a sustained decline in crude oil prices. As of midday, the Sensex rose by over 1,000 points, while the Nifty climbed above 25,300.
Foreign Portfolio Investors (FPIs) made net investments of Rs 53,739 crore in Indian equities from November 2 to 9, despite cumulative outflows of Rs 2.41 lakh crore in 2026. This surge in inflows was attributed to a sell-off in global markets driven by concerns over data center spending in the U.S., which has made India an attractive destination for FPIs.
The decline in crude oil prices further supported the domestic market, with Brent crude trading around USD 92.44 per barrel. The drop was influenced by U.S. officials downplaying the likelihood of military action against Iran, alleviating concerns over supply disruptions.
Additionally, Asian markets showed positive trends, with gains in South Korea and Japan, while U.S. stock futures indicated a favorable start for Wall Street. The Indian rupee also appreciated against the U.S. dollar, reflecting steady foreign capital inflows and improving geopolitical sentiment.
Technical analysts noted that the Nifty's strong opening near the 25,338 mark suggests continued bullish momentum, with potential resistance around 25,500 and support levels identified at 25,200 to 25,150. Momentum indicators remain strongly bullish, indicating significant buying activity, although some profit-booking may occur due to overbought conditions.