Sensex Rallies 900 Points, Nifty Tops 23,600 on FPI Boost
Indian stock markets witnessed a robust rally on Monday, with the Sensex rising over 900 points and the Nifty surpassing the 23,600 mark. This marks the sixth straight session of gains, reflecting renewed investor confidence as foreign portfolio investors (FPIs) re-entered the market in a big way. Strong performances in banking and information technology stocks added to the upward momentum.
Sensex and Nifty Touch Record Highs
The benchmark BSE Sensex jumped by 919 points or 1.19%, closing at 77,823, while the NSE Nifty50 surged by 264 points or 1.13% to settle at 23,615. The total market capitalization of BSE-listed companies rose by ₹4.63 lakh crore in a single session, bringing the total market cap to ₹417.93 lakh crore.
All 13 major sectoral indices closed in the green, with both mid-cap and small-cap segments gaining around 1.2%. The positive breadth in the market signaled widespread buying interest across sectors.
Foreign Portfolio Investors Return Strongly
The major driver behind the rally was a significant infusion of capital by foreign investors. FPIs bought shares worth ₹7,470 crore on Friday, the highest single-day inflow in the last four months. This marks a reversal after a prolonged period of outflows since late September, during which overseas investors withdrew nearly $29 billion amid concerns over domestic earnings, high valuations, and global tariff issues.
Top Performing Stocks
Among the top gainers were Power Grid, which rose 3%, and Larsen & Toubro (L&T), up by 2% following reports of a potential multi-billion-dollar contract with Qatar Energy. Kotak Mahindra Bank also jumped 2.6%, reaching its highest level since October 2021. NTPC and Tech Mahindra were also among the stocks that saw notable gains.
Analysts See Further Upside
Analysts noted that a portion of the recent rally could be attributed to short-covering. However, they also indicated that with 68% of FPI positions still on the bearish side, further buying could fuel continued upward momentum. The return of foreign investors, especially after months of persistent selling, has been viewed as a sign of stabilizing sentiment in the broader market.
Outlook Remains Positive
The strong FPI inflow, combined with sectoral strength and broad-based buying, suggests a positive outlook for Indian equities in the near term. Market watchers are optimistic that the current trend may sustain, particularly as global uncertainty eases and investor focus shifts to India’s growth story and earnings potential.
