FII Reversal Sparks Broad Rally — Nifty Eyes 24K Again
Foreign flows turned positive for the first time in 9 sessions. IT and banking led gains. RBI's rate hold expectations strengthened after softer CPI print.
Market Snapshot — Close
Market Overview
Indian equities staged a strong comeback on Friday as foreign institutional investors (FIIs) turned net buyers after nine consecutive sessions of selling, injecting ₹4,312 crore into domestic stocks. Nifty 50 closed at 23,847 — up 1.33% — while Sensex gained 1,042 points to settle at 78,420.
What Drove the Move
- Softer CPI: March retail inflation eased to 4.5%, below the RBI's 4.7% projection, reducing rate hike pressure
- FII reversal: ₹4,312 crore net buying vs. ₹2,800 crore selling yesterday — sharpest single-day swing in Q1 2026
- IT sector rally: TCS +2.1%, Infosys +1.8% after US tech indices closed higher overnight
- Banking strength: Nifty Bank +1.35%, HDFC Bank and ICICI Bank led the index
Global Cues
Overnight, the S&P 500 added 0.9% and Nasdaq rose 1.2%, driven by strong US non-farm payrolls data. Brent crude held steady at $87/barrel. The dollar index (DXY) softened to 103.8, giving EMs including India some breathing room.
FII / DII Flows
- FII: +₹4,312 cr (net buyers after 9 sessions)
- DII: +₹1,890 cr (continued domestic support)
- Total net: +₹6,202 cr inflow — strongest single session in 3 weeks
Sectors to Watch
Outperformers: IT (+2.3%), Banking (+1.4%), Auto (+1.1%). Underperformers: FMCG (-0.3%), Pharma (-0.1%) — defensive rotation unwinding as risk appetite returns.
The Angle
One day doesn't make a trend. FII buying is welcome, but the 9-session selling spree erased ~₹38,000 crore from Indian markets. The real test comes next week when Q4 earnings season kicks off with TCS results (April 17). If IT guidance disappoints on US discretionary spending, expect the rally to stall. For salaried investors, this is not the signal to chase — SIPs already deployed at lower levels are looking good; fresh lump sum should wait for earnings clarity.