Foreign institutional investors (FIIs) have invested over $10 billion in the Indian stock market, driving the Nifty to surpass 18,900 points. After being net sellers in the previous two years, FIIs have shown interest in Indian equities since March 2023. In comparison, domestic institutional investors (DIIs) have been selling, with only Rs 1,785 crore in buying. Factors contributing to India’s outperformance include strong FII equity flows, increased mutual fund equity flows, rural and capex cycle recovery, and optimism surrounding the Indian Prime Minister’s visit to the US. However, the reason behind the rally in midcap and smallcap stocks is uncertain, as they have significantly outperformed largecaps.
Diwali dhamaka isn’t over! How a Rs 38 lakh crore bull run sent Sensex up 8,000 points and Nifty up 10% in 8 days
India’s Diwali rally has added nearly Rs 38 lakh crore to BSE-listed companies’ market value in just eight trading sessions, with the Sensex surging nearly
November 11, 2026