Last Updated on November 6, 2026 8:10 pm by INDIAN AWAAZ

Indian Equities Outperform Global Peers as FII Buying Hits Six-Year High

By Our Business Correspondent

Indian equities delivered another emphatic performance on Friday, extending their winning streak to a seventh straight session and reinforcing the growing perception that domestic markets remain relatively insulated from the turbulence gripping global financial markets.

In a striking divergence from international trends, benchmark indices rallied sharply even as Wall Street suffered its steepest single-day decline in more than a year and technology-heavy markets across Asia and Europe faced intense selling pressure. The contrast highlights a broader shift underway in global investment flows, with India increasingly emerging as a preferred destination for capital seeking earnings visibility, macroeconomic stability and long-term growth.

Indian equity markets staged a powerful rally on Friday, with the benchmark Sensex soaring more than 1,700 points and the Nifty reclaiming the psychologically important 25,000 mark, even as global markets reeled under a sharp sell-off in technology and artificial intelligence-linked stocks.

The domestic market’s resilience was underpinned by heavy buying from foreign institutional investors (FIIs), a strengthening rupee, expectations of softer crude oil prices and optimism ahead of Diwali. Strong performances by heavyweight private banking and telecom stocks also helped the frontline indices outperform their global counterparts.

The rally extended the winning streak of both benchmark indices to seven consecutive trading sessions. During this period, the BSE Sensex gained 10.62 per cent, while the NSE Nifty advanced 10.27 per cent, reflecting a significant improvement in investor sentiment.

The 30-share BSE Sensex jumped 1,718.01 points, or 2.17 per cent, to close at 81,028.02. The broader NSE Nifty 50 climbed 493.75 points, or 2.01 per cent, to settle at 25,030.35.

The day’s gains were led by heavyweight banking stocks, particularly ICICI Bank and HDFC Bank. ICICI Bank advanced 4.75 per cent, while HDFC Bank rose 3.72 per cent. Bharti Airtel, which gained 2.45 per cent, was another major contributor to the Nifty’s advance.

However, the rally was not broad-based. The Nifty MidCap 150 index slipped 0.09 per cent, while the Nifty SmallCap 250 index declined 0.85 per cent, indicating continued selling pressure in the broader market.

Market breadth on the National Stock Exchange remained negative, with 2,141 stocks declining against 1,438 advancing, while 127 shares ended unchanged. The divergence between the benchmark indices and the broader market suggested that buying remained concentrated in select large-cap stocks.

The India VIX, which measures the market’s expectation of near-term volatility, rose 13.35 per cent to 17.66. The increase indicated that investors remained cautious despite the sharp gains in benchmark indices.

Foreign investor buying provides major support

A significant factor behind the domestic market’s strength was the return of substantial foreign portfolio investment. Foreign institutional investors purchased Indian equities worth Rs 14,975 crore on Thursday, marking their largest single-day buying in nearly six years.

The scale of the inflows provided a strong boost to market sentiment, particularly in large-cap stocks, which had been under pressure amid global uncertainty.

Foreign investor activity has remained an important factor influencing the direction of Indian equities. A sustained return of overseas capital could provide additional support to the market, although the continuation of such inflows will depend on global interest-rate expectations, currency movements and the relative attractiveness of Indian valuations.

The rupee’s recovery also contributed to the improved outlook. The domestic currency strengthened to 93.90 against the US dollar, compared with its previous close of 94.41. The appreciation to a six-month high offered some relief to investors concerned about imported inflation and the cost of overseas capital.

Expectations of a moderation in crude oil prices provided another supportive factor. Lower oil prices are generally favourable for India because of its substantial dependence on imported crude. A sustained decline can help ease pressure on the import bill, inflation and corporate input costs.

Banking and telecom stocks lead the rally

Private sector banking stocks emerged as the principal drivers of Friday’s gains. Heavyweight lenders ICICI Bank and HDFC Bank attracted strong buying interest, helping lift the benchmark indices.

Bharti Airtel also contributed to the positive sentiment following its latest quarterly results. The company’s consolidated financial performance remained strong, with both revenue and profit registering healthy year-on-year growth.

The strength in these large-cap counters helped offset weakness in several mid-cap and small-cap shares. The performance also reflected a preference among investors for companies with relatively strong earnings visibility amid uncertainty in international markets.

The contrast between benchmark gains and declining broader-market indices, however, warrants attention. It suggests that the rally was driven more by selective institutional buying than by a widespread improvement in risk appetite.

Global technology sell-off weighs on sentiment

The sharp contrast between Indian equities and international markets was particularly evident on Friday. Asian and European markets came under considerable pressure as investors continued to reassess valuations of technology companies and the sustainability of investments in artificial intelligence infrastructure.

The sell-off originated on Wall Street, where technology and semiconductor stocks suffered heavy losses on Thursday. Concerns over possible regulatory scrutiny of data-centre construction, elevated valuations and the long-term returns from massive AI-related investments triggered widespread profit-booking.

The S&P 500 plunged 4.36 per cent to 7,353.73, marking its steepest single-day decline since April 2025. The Dow Jones Industrial Average fell 1,833 points, or 3.44 per cent, to 51,523.06, while the Nasdaq Composite tumbled 5.52 per cent to 24,315.

The Nasdaq’s decline pushed the index more than 10 per cent below its October record high, placing it in correction territory.

Semiconductor companies were among the worst affected. Nvidia declined more than 9 per cent, while Qualcomm lost 9 per cent after its fourth-quarter smartphone chip sales outlook fell short of market expectations.

Sandisk plunged 22.3 per cent, Lumentum declined 18.7 per cent and Micron Technology dropped 17.5 per cent. AppLovin bucked the broader trend, gaining around 31 per cent after reporting better-than-expected quarterly earnings.

The weakness subsequently spread across Asian markets, where technology and semiconductor stocks faced selling pressure. European equities also extended their losses on Friday, tracking the global decline.

Dow futures were down 438 points, signalling a weak start for US equities.

Domestic market shows relative resilience

The relative strength of Indian equities amid the international sell-off has also drawn attention to the difference in the composition of domestic and global markets. Indian indices have a substantial representation of banking, financial services, consumption and other traditional businesses, while the recent global market boom has been heavily influenced by a relatively narrow group of technology and AI-related companies.

This difference in market composition may have helped India attract funds at a time when investors were reassessing their exposure to expensive technology stocks. However, global volatility, foreign fund flows and crude oil movements will continue to influence the domestic market.

The market’s strong weekly performance has also improved investor wealth. The rally reflects a combination of foreign inflows, better earnings expectations and easing concerns over energy prices, although the weakness in mid-cap and small-cap shares suggests that investors have not yet embraced risk across the board. Reuters+1

Crude oil, rupee and bullion

In the commodities market, Brent crude futures for December 2026 delivery declined 70 cents, or 0.71 per cent, to $97.59 a barrel. The movement in crude prices remains particularly important for India, given the country’s dependence on imported energy and the implications for inflation, the current account deficit and corporate profitability.

In the foreign exchange market, the rupee strengthened to 93.90 against the US dollar, compared with its previous close of 94.41. The recovery provided some relief after recent currency weakness and improved sentiment towards domestic financial assets.

The US Dollar Index, which measures the greenback against a basket of major currencies, rose 0.41 per cent to 102.01, indicating that the rupee’s appreciation came despite a stronger dollar.

Gold prices witnessed selling pressure. MCX gold futures for December 4, 2026 delivery declined 1.29 per cent to Rs 1,42,242. The yield on India’s 10-year benchmark government security was quoted at 7.185 per cent, against 7.192 per cent in the previous session. This represented a marginal decline in the yield, rather than an increase.

In the US bond market, the 10-year Treasury yield rose 0.23 per cent to 4.841 per cent, adding another variable for global investors assessing the outlook for interest rates and equity valuations.

Earnings-driven action keeps individual stocks in focus

Apart from the broader market rally, quarterly earnings announcements triggered sharp movements in several individual stocks.

Bharti Airtel advanced 2.45 per cent after reporting a strong performance for the second quarter of FY27. Its consolidated net profit before exceptional items increased 32.7 per cent year-on-year to Rs 9,015 crore, compared with Rs 6,792 crore in the corresponding quarter last year.

Consolidated revenue rose 16.7 per cent to Rs 60,878 crore from Rs 52,145 crore a year earlier. On a sequential basis, revenue increased 4 per cent from Rs 58,539 crore in the June quarter. The results reinforced investor confidence in the telecom company’s earnings growth.

Titan Company gained 3.42 per cent after reporting a sharp increase in quarterly profitability. Its consolidated net profit more than doubled, rising 113.66 per cent to Rs 2,393 crore in Q2 FY27 from Rs 1,120 crore in the year-ago quarter. Revenue from operations increased 23.55 per cent to Rs 20,337 crore, reflecting healthy business growth.

Sai Life Sciences was among the notable gainers, surging 11.95 per cent. The company reported a 17 per cent year-on-year increase in consolidated net profit to Rs 98 crore for the September quarter. Revenue from operations grew 22.7 per cent to Rs 659 crore from Rs 537 crore in the corresponding quarter of the previous financial year.

On the losing side, Thermax plunged 17.27 per cent after reporting a decline in quarterly profit despite higher revenue. Its consolidated net profit fell 4.28 per cent to Rs 114.54 crore in Q2 FY27 from Rs 119.66 crore a year earlier. Revenue from operations, however, increased 11.4 per cent to Rs 2,755.87 crore for the quarter ended September 30, 2026.

Rubicon Research declined 4.67 per cent after gaining 11.51 per cent over the preceding five trading sessions. The company had reported a strong set of quarterly numbers, with adjusted consolidated net profit increasing 68 per cent year-on-year to Rs 90.48 crore from Rs 53.85 crore. Sequentially, adjusted profit rose 6.7 per cent from Rs 84.78 crore.

Revenue from operations climbed 39.9 per cent to Rs 576.38 crore from Rs 412.02 crore in the corresponding quarter last year. On a quarter-on-quarter basis, revenue increased 7.9 per cent from Rs 534.34 crore. The decline in the share price despite strong earnings suggested some profit-booking after its recent gains.

US employment data and Fed commentary in focus

Looking ahead, investors will closely monitor developments in the US economy, particularly employment data and signals from Federal Reserve officials.

The US October employment report is among the important indicators being watched by market participants, as it could influence expectations about the Federal Reserve’s future interest-rate decisions. Labour-market conditions, inflation trends and the central bank’s assessment of economic growth will remain key determinants of global liquidity.

Cleveland Federal Reserve President Beth Hammack said interest rates need to remain restrictive to bring inflation back towards the central bank’s target. Such comments underline the uncertainty surrounding the timing and pace of any monetary easing.

For Indian equities, the direction of foreign investment flows, the rupee, crude oil prices and corporate earnings will remain important market drivers. The continuation of the domestic rally will also depend on whether buying broadens beyond heavyweight banking and select large-cap stocks.

Muhurat trading on November 8

Meanwhile, Indian stock exchanges will hold a special Muhurat trading session on Sunday, November 8, on the occasion of Diwali Lakshmi Pujan, marking the beginning of Samvat 2083.

According to the announced schedule, the pre-open session will take place from 2:05 pm to 2:20 pm, followed by the special trading session from 2:20 pm to 3:30 pm.

The traditional Muhurat session is considered auspicious by investors, many of whom undertake symbolic investments to mark the beginning of the Hindu financial year. With benchmark indices entering the festive period after seven consecutive sessions of gains, investors will be watching whether the positive momentum carries into the new Samvat.

Disclaimer: This report is for information and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Investors should consult their financial advisers before making investment decisions.