Markets Aim Higher as Foreign Flows Lift Sentiment
Indian markets are set for a strong open as foreign inflows rise, earnings prospects improve, and global cues turn positive ahead of key U.S. jobs data.
A Confident Start for Indian Equities
India’s equity markets look set to kick off Thursday’s session on a firm footing, buoyed by a renewed wave of foreign buying and growing optimism around the country’s earnings landscape. With both the Nifty 50 and Sensex hovering less than a percentage point below their all-time highs, investors are positioning for what could be another record-setting day, fueled in part by supportive global signals and anticipation surrounding crucial U.S. economic data.
A Market Near Record Peaks
The early trend was clear even before the opening bell. Gift Nifty futures were trading at 26,141 points at 7:56 a.m. IST, indicating a strong possibility that the Nifty 50 would start the day above Wednesday’s close of 26,052.65. That momentum comes on the heels of a steady climb in recent weeks, placing India’s headline indices within striking distance of new peaks last seen 14 months ago.
Wednesday’s session provided a preview of this bullish sentiment. Both the Nifty and Sensex rose around 0.6%, powered largely by technology shares after Infosys announced that it will launch its ₹180-billion share buyback program on November 20. The move from India’s second-largest IT services exporter injected additional confidence into a sector already benefiting from global demand and steady earnings visibility.
Foreign Inflows Make a Comeback
One of the most notable shifts this week has been the return of foreign portfolio investors (FPIs) to Indian equities. NSE’s provisional data showed FPIs purchased ₹15.81 billion worth of domestic shares on Wednesday, while domestic institutional investors (DIIs) added another ₹13.61 billion.
This synchronized buying from both foreign and local institutions is reinforcing market breadth and signaling growing conviction in India’s economic strength. Analysts attribute the uptick in overseas demand to a combination of attractive valuations, resilient corporate profits, and easing concerns about global monetary tightening.
Expectations of progress on a possible India–U.S. trade agreement have also helped brighten sentiment, creating a favorable backdrop for risk-taking even as traders await fresh signals from the Federal Reserve.
Wall Street Rally and Asian Markets Add Fuel
Investors in the Asia-Pacific region picked up the risk-on baton after Wall Street rallied sharply overnight. Asian stocks climbed 1.2%, supported by blockbuster earnings from Nvidia, whose upbeat outlook helped calm fears of an overheating artificial intelligence sector. The spillover effects reached Indian markets as well, adding a global tailwind to already strong domestic cues.
Room for More Gains
Market strategists believe the current setup remains constructive. Ajit Mishra, senior vice president of research at Religare Broking, said the firm remains optimistic about India’s near-term trajectory. According to him, the Nifty has the potential to push into uncharted territory soon, aided by investor preference for high-quality large-cap and fundamentally strong mid-cap companies.
Mishra’s comments reflect a broad sentiment across brokerage desks: India continues to stand out as one of the most stable and compelling equity markets globally, especially in a year marked by geopolitical uncertainty and uneven international growth.
U.S. Jobs Report
All eyes now turn to the U.S. non-farm payrolls data for September, scheduled for release later in the day. The report is widely expected to shape expectations around the Federal Reserve’s interest-rate path. A softer jobs print may boost hopes for timely rate cuts, while a stronger reading could reinforce the Fed’s cautious stance.
For Indian equities, the outcome will influence both foreign flows and short-term volatility, but for now, the mood remains broadly upbeat.
Stocks to Watch Today
NBCC (India) Ltd.
The state-run construction and project management firm has secured fresh work orders worth ₹29.66 billion, strengthening its pipeline and boosting investor sentiment.
Life Insurance Corporation of India (LIC)
India’s largest insurer has reduced its stake in Bharat Petroleum Corp. (BPCL) from 8.76% to 6.76%, a move that could shift institutional ownership dynamics in the energy company.
Max Healthcare Institute
The hospital operator announced plans to expand its capacity by over 8,300 beds, with approximately 4,800 beds slated for addition over the next three to four years, signaling aggressive growth ambitions in India’s healthcare sector.
CG Power and Industrial Solutions
The company disclosed receiving a tax demand of ₹3.65 billion, which may draw investor scrutiny and impact short-term trading activity.
What This Means for Investors
The combination of improving corporate earnings, renewed foreign interest, and strong global cues is creating fertile ground for India’s equity markets to push higher. With sectors like information technology, banking, and healthcare showing renewed momentum, broad-based participation is likely to continue, though investors may see temporary swings as U.S. economic data takes center stage.
A Market Riding Tailwinds, Eyes on the Horizon
As Thursday’s session begins, the mood across Dalal Street is one of cautious optimism. While global macroeconomic uncertainties remain, India’s strong domestic fundamentals and the return of foreign inflows provide a sturdy foundation for further upside. Whether the market can break into record territory may depend on how global cues unfold, but for now, the path upward appears well supported.
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