Highlights

• Nifty 50 crossed the 26,100 level amid broad-based buying.
• Foreign institutional flows turned positive after recent outflows.
• Global cues and rate-cut expectations supported sentiment.
• Financials and IT stocks led index-level gains.

Indian equities started the week on a positive footing, with the Nifty 50 moving above the 26,100 mark to end at 26,172.40, gaining 0.80%, supported by gains across heavyweight stocks and improved global cues. The benchmark index extended its upward momentum from the previous session, reflecting steady participation across sectors.

The advance came alongside a sharp rise in the Sensex, while broader market indices also traded higher, indicating healthy market breadth. Advancing stocks outpaced declines, pointing to widespread buying interest rather than isolated moves.

Foreign Flows Provide Support

A key factor behind the day’s strength was a shift in foreign institutional activity, with overseas investors turning net buyers after a prolonged phase of selling. The return of foreign inflows helped lift sentiment, particularly in index heavyweights that have a higher foreign ownership.

Market participants noted that foreign flows often influence short-term direction for benchmark indices, and the renewed buying helped the Nifty 50 sustain levels above the psychologically important 26,000 mark.

Global Cues and Rate Expectations

Positive cues from global markets also played a role in supporting domestic equities. Expectations around potential interest rate cuts by major central banks next year continued to underpin risk sentiment globally, filtering into Indian markets.

Easing inflation trends in key economies and expectations of a softer monetary stance have kept global equity markets relatively firm, providing a supportive backdrop for emerging market equities, including India.

Sectoral Performance Lifts Nifty 50

On the sectoral front, financials and information technology stocks contributed most to the Nifty 50’s gains. Select non-bank financial companies and private lenders moved higher, while IT stocks advanced amid stable global technology cues.

Other sectors, including metals and services, also traded in positive territory, adding to the overall strength of the index. The participation of multiple sectors helped the rally sustain through the session.