Indian equity markets delivered a strong performance with benchmark indices closing at record highs amid broad-based buying interest across banking, realty, metals and auto sectors. The Nifty 50 climbed to an all-time high of 26,340 during the session before settling at 26,328.55, while the BSE Sensex jumped over 740 points intraday before closing 573.41 points higher at 85,762.01.

FPI Buying Returns After Extended Selling Streak

Foreign Portfolio Investors (FPIs) broke their selling streak and turned net buyers, purchasing Indian equities worth ₹289.80 crore according to provisional data from the National Stock Exchange. This marked a significant shift after eight consecutive sessions of net selling by overseas investors.

The buying action coincided with the Nifty 50 touching its first all-time high of 2026. There was a major exodus of FPIs from the Indian market during the previous year, driven by decline in the rupee's value, with overseas investors net offloading shares worth ₹1.66 lakh crore during the calendar year.

Market Performance Overview

The equity benchmark indices demonstrated robust gains during the trading session, with steady domestic institutional inflows helping offset previous foreign selling pressure. The market capitalisation of the Nifty index jumped by ₹1.64 lakh crore during the session.

The Bank Nifty extended its upward move and scaled a fresh all-time high of 60,204 during the session, remaining a clear outperformer versus the Nifty in recent sessions. The Nifty logged its third consecutive session of advance, with the last record high previously touched at 26,325.8 points.

Sectoral Performance and Market Drivers

Sectorally, all indices ended in the green except FMCG, demonstrating broad-based market strength. Financial and energy stocks led the rally, with realty, PSU Bank, metals and auto sectors contributing significantly to the gains. According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, optimism around an improving earnings outlook, healthy auto sales, positive bank business updates and expectations of reforms buoyed sentiment.

Metal stocks gained traction driven by the government's safeguard duty on some steel products to curb cheap imports from China and on rising commodity prices. Power-related stocks witnessed strong gains, with SJVN, IREDA, PFC, and REC featuring among the top performers.

Top Performers and Key Stock Movements

From the Nifty 50 basket, Coal India, NTPC, Hindalco, Trent, SBI and Jio Financial led the gainers, while ITC, Kotak Mahindra Bank, Nestle India, Shriram Finance and Bajaj Auto were major laggards.

Coal India was the top Nifty gainer after it allowed direct participation of foreign coal buyers from select countries in its e-auctions. ITC shares extended losses as investors worried about earnings pressure from higher taxes on cigarettes.

Broader Market Activity

Market breadth remained strong throughout the session, with 4,371 stocks traded on the BSE. Out of these, 2,772 advanced, 1,449 declined, and 150 remained unchanged. The number of stocks hitting a 52-week high stood at 185, while 83 stocks touched their 52-week low, indicating stronger bullish momentum overall.

Under the midcap index, Torrent Power, IREDA, NHPC, Dabur India and National Aluminium zoomed 5.00-6.00%, while among smallcap stocks, Ola Electric, JBM Auto, Anant Raj and CESC surged 5.00-9.00%. According to Vinod Nair, Head of Research at Geojit Investments, investor sentiment remained broadly constructive as attention turns to quarterly earnings, likely to guide near-term market direction.

Indian equity markets extended their morning gains in afternoon trade on Friday, with benchmark indices posting solid advances across the board. The BSE Sensex rose 492.13 points or 0.58% to ₹85,680.73, while the NSE Nifty advanced 161.05 points or 0.62% to 26,307.60 as of 12:40 pm.

Market Opening and Performance

The Sensex opened at ₹85,259.36 against its previous close of ₹85,188.60, while the Nifty opened at 26,155.10, marginally up from its previous close of 26,146.55. The positive momentum sustained throughout the trading session, with both indices building on their opening gains.

Market Breadth and Activity

Market breadth remained positive on the BSE, with 2,602 stocks advancing against 1,393 declines and 185 unchanged among 4,180 stocks traded. The broader market participation was evident with:

• 150 stocks hitting 52-week highs compared to 66 touching 52-week lows
• 165 stocks locked in upper circuit limits
• 110 stocks in lower circuit limits

Top Performers and Laggards

Coal India emerged as the top gainer on the Nifty50, surging 5.88% to ₹424.00, followed by NTPC at ₹348.15, up 3.52%. Other notable gainers included Trent, which climbed 2.75% to ₹4,415.70, and Hindalco, gaining 2.44% to ₹916.75. Jio Financial Services rose 1.98% to ₹301.55.

On the downside, ITC remained the biggest laggard, declining 3.89% to ₹349.70 amid continued pressure from higher cigarette excise duty announced in the Union Budget. Other decliners included Nestle India, which fell 0.95% to ₹1,282.70, and Bharti Airtel, shedding 0.40% to ₹2,102.00.

Sectoral Performance

Bank Nifty displayed clear outperformance, breaching the psychological 60,000 mark to settle at 60,103.10, up 391.55 points or 0.66%, signalling improved near-term momentum in banking stocks. The Nifty Financial Services index rose 0.89% to 27,912.85, while the Nifty Next 50 gained 0.81% to 70,241.20.

Mid and smallcap indices also participated in the rally, with the Nifty Midcap 100 advancing 0.85% to 61,264.30 and the Nifty Smallcap 100 rising 0.62% to 17,814.20.

Market Outlook

Ponmudi R, CEO of Enrich Money, noted that the Nifty is trading near the upper end of its short-term consolidation range, keeping the 26,200–26,300 resistance zone in focus. He emphasized that a sustained move above 26,250 is essential to confirm fresh strength, while 26,100–26,050 continues to act as strong support.