Sensex, Nifty jump over 1% as FPIs log longest buying streak in 2 years

Equities surge on foreign flows; RIL rallies 5.3%

Indian equity benchmarks rose more than 1 per cent on Monday, supported by the longest buying streak from overseas funds in nearly two years and a sharp rally in index heavyweight Reliance Industries.

 

The Sensex closed at 80,218, up 1,006 points or 1.3 per cent, while the Nifty 50 ended at 24,329, gaining 289 points or 1.2 per cent. The total market capitalisation of BSE-listed firms rose by ₹4.5 trillion, reaching ₹426 trillion. Reliance Industries, which rallied more than 5 per cent, accounted for over a third of the gains in both indices.

 

Foreign portfolio investors (FPIs) bought shares worth ₹2,474 crore on Monday. Over the past nine trading sessions, overseas funds have poured ₹34,941 crore into domestic equities — their longest stretch of net buying since July 20, 2023.

 

 

“A weakening dollar and inflationary pressures in the US may attract FPIs into the domestic market. However, investors are advised to exercise caution in the near term as the market is yet to discount the impact of retaliation for the Pahalgam terrorist attack,” said Vinod Nair, head of research at Geojit Financial Services. 

 

Shares of Reliance surged 5.3 per cent — their strongest single-day gain since October 2024 — after the oil-to-telecom conglomerate reported better-than-expected March quarter results. Most analysts have upgraded Reliance’s stock.

 

In a note, Nomura said scaling up the company’s new energy business, upcoming tariff hikes for Jio, and a potential listing for Jio will drive value-unlocking for Reliance.

 

“Additionally, with the completion of streamlining operations at Reliance Retail, the retail business will sustain a healthy growth trajectory,” the note said. The brokerage raised Reliance’s target price to ₹1,650. Of the 42 analysts covering the stock on Bloomberg, 35 have a “buy” rating.

 

Reliance’s gains helped offset negative sentiment from rising tensions between India and Pakistan.

 

“With Indian equities witnessing sustained buying interest, we expect the gradual up-move in the market to continue, albeit with some volatility linked to geopolitical developments. Meanwhile, stock- or sector-specific action would continue on account of ongoing earnings announcements,” said Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services.

 

Concerns over the economic impact of heightened tensions -- after terrorists killed 26 people, mostly tourists, in Jammu & Kashmir’s Pahalgam -- led some investors to trim positions last Friday.

 

The markets have rebounded close to 10 per cent from this month’s lows.

 

Market breadth on Monday was mixed, with 2,091 stocks declining and 1,914 advancing. 

 

Shares of defence companies rallied after the government signed a deal with France to buy 26 Rafale marine jets worth ₹64,000 crore for the Navy.

 

Financial stocks rose in line with the broader markets, while the IT index slipped following last week’s 6.6 per cent surge.