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Strong FII Inflows Drive Dalal Street’s Bullish Momentum

Tina TinaChouhanbyTina TinaChouhan
October 17, 2025
Strong FII Inflows Drive Dalal Street's Bullish Momentum

Mumbai: The benchmark BSE Sensex surged by 862.23 points, while the Nifty approached the 25,600 level on Thursday, fueled by widespread buying from investors following a global stock market rally and optimism regarding potential US Federal Reserve rate cuts. The 30-share BSE Sensex climbed 862.23 points, or 1.04 percent, to close at 83,467.66, with 28 constituents gaining and two experiencing losses. During the trading session, it peaked at 1,010.05 points, or 1.22 percent, reaching 83,615.48. The 50-share NSE Nifty increased by 261.75 points, or 1.03 percent, to finish at 25,585.30.

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“Indian equity markets continued their upward trend on Thursday, with the Sensex rising nearly 900 points and the Nifty reaching a four-month high, bolstered by strong banking stocks and positive global cues. The anticipation of a possible US Fed rate cut and the IMF’s revised growth forecast for India (6.6% for FY26) enhanced the market sentiment,” stated Gaurav Garg, a Research Analyst at Lemonn Markets Desk. The BSE smallcap index advanced by 0.47 percent, while the midcap index increased by 0.29 percent, with all sectoral indices ending in the green. “Domestic equities maintained their robust recovery, driven by favorable global signals and renewed optimism regarding India-US trade negotiations.

Sentiment was further uplifted by expectations for demand revival in Q3 FY26, early indications of FII inflows, dovish remarks from the US Fed, and a weaker dollar index,” remarked Vinod Nair, head of research at Geojit Investments Limited. The real estate sector led the gains with a 1.87 percent increase, followed by FMCG (1.74 percent), consumer durables (1.51 percent), banks (1.27 percent), automotive (1.15 percent), consumer discretionary (1.05 percent), and commodities (0.76 percent). A total of 2,377 stocks advanced, while 1,810 declined, and 147 remained unchanged on the BSE.

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Among Sensex companies, Kotak Mahindra Bank saw the highest increase at 2.67 percent, with Titan, Axis Bank, Adani Ports, Mahindra & Mahindra, Reliance Industries, Tata Motors, and HDFC Bank also posting significant gains. Conversely, Eternal and Infosys were among the laggards.

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