Indian equity benchmarks surged to close out the trading week, driven by a return of foreign institutional investors and falling global energy costs. The Sensex climbed 1,718.01 points, or 2.17 percent, to finish at 81,028.02, while the Nifty advanced 493.75 points, or 2.01 percent, to close at 25,030.35, pushing the benchmark past the 25,000 threshold.
Foreign Investors Pour Billions Back Into Indian Equities
The domestic market rally received major momentum from overseas funds reversing months of heavy selling. Foreign investors purchased Indian shares worth 15,000 crore rupees. This marked the largest single-day purchase by foreign institutional investors since February 24, 2021.
The sudden capital shift followed a massive sell-off in artificial intelligence and technology shares across United States, South Korean, Japanese, and Chinese markets. Analysts pointed out that global funds were rebalancing their portfolios away from technology heavyweights after a downturn in US tech shares. Because Indian equities carried lower exposure to AI-focused valuations, the domestic market emerged as a favored destination for reallocated capital (MyFinPoint reported).
On the previous day, the Sensex had already advanced 2,008 points, closing at 81,028 as trading concluded for the final session of Samvat 2082. Ponmudi R, CEO of Enrich Money, told ANI that the sharp advance reflects improving global risk sentiment, supported by lower crude prices and renewed institutional buying.
The US midterm outcome improved global sentiment, raising expectations of a more measured approach to trade and tariff policies and potentially supporting FII flows into emerging markets, Market analysts observed in trade commentary
Crude Oil Slide Relieves Economic Pressure
Simultaneously, global oil benchmarks retreated sharply to their lowest levels in more than two months. Brent crude futures fell 50 cents, or 0.53 percent, to $94.12 per barrel, while US West Texas Intermediate crude dropped 61 cents, or 0.69 percent, to $87.51. By the end of the Friday session, Brent settled at $94.62 per barrel, shedding $8.98, or 8.66 percent. Later updates showed Brent crude futures declining further by $0.83, or 0.84 percent, to $97.46 per barrel, while WTI crude eased by $0.78, or 0.86 percent, to $89.74 (Deshabhimani reported).
For India, a major energy importer, the sliding commodity prices offered immediate relief from domestic inflation, cost pressures, and fiscal strain (MyFinPoint reported).
Banking and Auto Giants Lead Sector Gains
Buying pressure swept across nearly every major sector as the market closed out Samvat 2082. Private sector banks and financial services spearheaded the advance, with the Nifty Private Bank index jumping 3.22 percent, Financial Services rising 2.54 percent, Consumer Durables gaining 1.70 percent, and Pharma advancing 1.21 percent (Manorama Online reported).
Mahindra & Mahindra captured the top spot among Sensex constituents, surging 6.15 percent following a rating upgrade from Nomura (Manorama Online reported). Other notable gainers included ICICI Bank up 4.65 percent, HDFC Bank up 3.56 percent, Titan Company advancing 3.36 percent, Axis Bank gaining 3.19 percent, Kotak Mahindra Bank climbing 2.68 percent, and Tata Steel rising 2.20 percent (Deshabhimani reported). Additional solid performances were posted by Infosys climbing 1.25 percent, Bajaj Finserv climbing 1.27 percent, and UltraTech Cement advancing 1.68 percent, while other companies also posted gains. Out of all Sensex companies, Power Grid Corporation stood as the sole exception, slipping 0.57 percent into negative territory (Deshabhimani reported).
