The Indian stock market continued its upward momentum as benchmark indices posted gains for the third consecutive session, reflecting improving investor confidence and a visible turnaround in foreign fund flows. During early trade on Tuesday, Sensex climbed over 400 points, while Nifty 50 moved decisively closer to the psychologically critical 26,000 mark—a level that investors have been closely watching for weeks.
At around 10:30 AM, the Sensex was trading 370.23 points (0.44%) higher at 84,435.98, while the Nifty gained 108.15 points (0.42%) to 25,975.45. What makes this rally important is not just the numbers, but the structure behind the move. Foreign institutional investor (FII) inflows, firm Asian markets, easing crude oil prices, and broad-based sector participation all aligned to support the gains.
For numerous retail investors, instinctive pain questions arise: Is this rally authentic, or is it short-lived? Are there conviction level institutional buys? Is entering near 26,000 safe or is there a limit to the upside? Today’s market requires us to look beyond the headlines to understand the underlying reasons driving the price action.
What Is Happening in the Stock Market Today and Why It Matters
The positive movements recorded by Sensex and Nifty correlate with the strengthening of foreign fund flows attributed to the renewed positive sentiment in the market due to the expected trade agreement with India and the US. Following the recent bullish period, foreign participants, for the first time, are expecting an increase in the purchase of Indian equities, and, on most occasions, this activity is the first indicator of an expected increase in the market for the following months.
Importantly, this move is not limited to a handful of stocks. All 16 major sectoral indices were trading in the green, while the broader market also showed strength. The Nifty Midcap 100 and Nifty Smallcap 100 gained up to 0.5%, reflecting improving risk appetite beyond just large-cap names.
Market breadth remained firmly positive, with about 2,406 stocks advancing, 1,146 declining, and 151 remaining unchanged. Such breadth typically indicates institutional participation rather than short-lived speculative spikes—an important distinction for investors who often get trapped chasing momentum without understanding its source.
Why FII Buying Is the Single Biggest Driver of Today’s Rally
The most critical factor behind today’s market gain is sustained FII buying, which has shifted the tone from caution to optimism. On Monday, foreign institutional investors bought equities worth ₹2,254.64 crore, following net purchases of ₹1,950.77 crore in the previous session on Friday. In just two trading days, total FII inflows crossed ₹4,200 crore.
Foreign institutional investors (FIIs) consider macroeconomic stability, global liquidity, currency values, and relative valuations—not immediate news. FIIs are consistent buyers and typically initiate transactions with index heavyweights, causing immediate increases in the Sensex and Nifty. The retail investor typically comes in after the FIIs have moved the prices.
For investors who repeatedly struggle with timing, this is a key pain point: markets often move first, explanations come later. Recognizing institutional behaviour early is what separates informed participation from emotional chasing.
How Global Markets and US Data Are Influencing Indian Equities
Global cues provided a supportive backdrop to today’s rally. Asian markets were trading mostly higher, with Japan’s Nikkei 225, Hong Kong’s Hang Seng, and South Korea’s Kospi all advancing in early trade. US equities also settled higher overnight, reinforcing a risk-on environment across global markets.
HDFC Securities says that global stock markets rose because people were hopeful about Japan's political situation, technology stocks bounced back, and the US dollar got weaker. At the same time, reports that China has told banks to limit their exposure to US bonds also had an effect on how capital is allocated around the world.
Investors are now keenly awaiting delayed January US employment data and CPI inflation figures, scheduled later this week. These releases are expected to provide guidance on the US Federal Reserve’s interest rate policy for the rest of 2026, which has a direct bearing on global liquidity and emerging market flows like India.
Why Falling Crude Oil Prices Are Supporting the Market
Another key tailwind for Indian equities is the decline in crude oil prices. Brent crude slipped 0.28% to $68.85 per barrel, easing concerns around inflation and input costs. For an oil-importing economy like India, lower crude prices are structurally positive.
They help lower inflation, improve the current account balance, and support corporate margins, which are things that foreign investors pay close attention to. A stable crude environment also takes some of the pressure off the rupee, which is very important for keeping foreign capital flowing in.
Which Stocks Are Leading and Lagging the Market Today
Sectoral leadership further confirms the quality of the rally. Tata Steel, ETERNAL, and Tech Mahindra emerged as top gainers in the Nifty 50, rising up to 4%, reflecting renewed interest in cyclical and technology stocks. At the same time, Adani Enterprises and Adani Ports & Special Economic Zone were among the major laggards, declining up to 2%.
This divergence is healthy. Not every stock rising together is a sign of strength—selective buying often reflects better price discovery and rational positioning rather than blind optimism.
Key Market Numbers Investors Should Track Today
| Indicator | Latest Reading |
| Sensex | 84,435.98 (+370.23 pts, +0.44%) |
| Nifty 50 | 25,975.45 (+108.15 pts, +0.42%) |
| FII Net Buying (Monday) | ₹2,254.64 crore |
| FII Net Buying (Friday) | ₹1,950.77 crore |
| Brent Crude | $68.85 per barrel |
| Advancing Stocks | 2,406 |
| Declining Stocks | 1,146 |
