Nifty Jumps 7.5% in a Week as Foreign Inflows and Earnings Lift Indian Stocks

what happened

According to CNBC-TV18, published on TradingView, Indian stocks staged a sharp weekly rally. The Nifty rose 7.5%, its strongest weekly gain since February 2021. HDFC Bank climbed 14% and Reliance Industries gained 13% over the week, and Reliance shares jumped 12% on Monday after its results, the biggest single-day gain for the stock in six years.

Foreign institutional investors (FIIs) poured in nearly ₹50,000 crore over the last six sessions, after a long stretch of selling. The author also credits falling oil prices during the week and corporate results that were mostly better than expected for supporting the market.

why it matters

A mix of returning foreign capital, strong results from large companies and lower oil prices is generally favourable for Indian equities, since India is a major energy importer. The author cautions that the market is far from out of the woods, pointing to the situation in West Asia and a possible unwinding of the AI trade. He also cites a record single-day drop in the Nasdaq, which in his view heightens concerns about an AI bubble. Investors weighing the durability of this weekly rally would need to factor in these risks.

market impact

Indian stocks: FII inflows and strong earnings support the Nifty; lower oil helps the rally

• ▲Nifty 50 pressure up — returning foreign capital and better-than-expected earnings support the index
• ▼Brent pressure down — lower oil prices during the week are cited as a support factor for Indian shares

instruments