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| Foreign Investors are Buying: Nifty 50 up by 300 Points, Sensex Rises 1000 Points |
Nifty 50 up by 300 Points, Sensex Rises 1000 Points. Let’s find-out the reason.
The Indian stock market witnessed a strong rally today, with the Nifty 50 surging over 300 points and the Sensex soaring 1,000 points. Almost every financial news channel is highlighting the return of Foreign Institutional Investors (FIIs), but we at Nifty Daily Trade have been consistently reporting in our market recaps that the market is bullish.
Today, the Nifty 50 proved the bulls’ strength once again by opening 150+ points gap up. After a minor dip of 80 points, the market resumed its upward journey, breaking the 23,600 level. Let’s analyze the key factors driving this bullish momentum.
📈 What’s Fueling the Rally?
1️⃣ FII Buying Returns
After months of selling, Foreign Institutional Investors (FIIs) have finally turned net buyers in three of the last four sessions, significantly improving market sentiment.
🔹 On March 21, FIIs purchased ₹7,470 crore worth of equities, marking a clear shift in their strategy.
🔹 Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, commented:
“The recent reversal in FII selling has turned market sentiment for the better, facilitating a strong rally. The intensity of FII selling had already been declining, and now we are seeing clear signs of renewed interest in Indian equities.”
2️⃣ Strong Domestic Economic Indicators
Despite global uncertainties, India’s economic fundamentals remain strong, attracting FIIs back into the market.
🔹 Investors were initially cautious due to U.S. tariff concerns (set to take effect on April 2).
🔹 However, India’s resilient macroeconomic indicators and fair stock valuations have encouraged foreign investors to shift from sellers to buyers.
🔹 This shift has triggered significant short covering, leading to sharp price spikes.
💡 Market Expert’s View:
“The market has an uncanny ability to surprise. Last week, the Nifty surged 4.6% in a single week, even when global markets were worried about Trump’s reciprocal tariffs. The improving macros of the Indian economy have been a key driver of this rally.” — Dr. VK Vijayakumar
3️⃣ Falling U.S. Treasury Yields
A decline in U.S. Treasury yields has further supported Indian equities.
🔹 The 10-year U.S. Treasury yield has fallen nearly 40 basis points from its mid-February highs, settling at 4.27%.
🔹 Lower yields in the U.S. make emerging markets like India more attractive, prompting investors to shift funds from U.S. stocks to Indian markets.
4️⃣ Strong Technical Indicators
🔸 Nifty has formed a bullish Marubozu candle on the weekly chart, recovering nearly all its February losses.
🔸 The index broke multiple resistance levels, closing above the 20-day, 50-day, and 89-day Exponential Moving Averages (EMA).
🔸 According to Angel One, the Nifty has broken out of a Falling Channel pattern, indicating a strong bullish trend.
💡 Key Levels to Watch:
✅ Immediate Target: 23,800
✅ Next Target: 24,000 (200-Day Simple Moving Average)
📊 RSI Indicator:
🔹 RSI Smoothened has crossed its previous swing high of 60, aligning with the price breakout at 23,800.
🔹 This momentum shift suggests further upside potential in the coming days.
🚀 FIIs Are Back in Action!
Foreign investors had pulled out nearly ₹2.4 lakh crore from Indian stock markets since September 2023. However, they are now returning aggressively, with ₹7,470 crore of fresh inflows recorded on Friday alone—the highest single-day inflow in four months.
💡 Market analysts attribute this comeback to:
✔️ Improving domestic economic indicators
✔️ Attractive stock valuations
✔️ Expectations of measured U.S. trade tariffs
Expert Take:
“Improving macros and fair valuations have turned FIIs into buyers, triggering massive short covering and amplifying market gains.” — Dr. VK Vijayakumar
🔎 Final Thoughts
The recent surge in the Indian stock market is not just a short-term rally—it is backed by strong fundamentals, improving FII inflows, and bullish technical patterns. However, investors should stay cautious as April 2 (U.S. tariff implementation day) approaches, which could bring some volatility.
📢 What do you think about this rally? Will Nifty sustain above 23,600? Let us know in the comments!
🔔 Stay tuned for our daily market recap for more insights!