Sensex, Nifty Hit Two-Month Highs on FII Buying Rally
Indian stock markets extended their rally for a fifth straight session on Wednesday, 4 November 2026, with the Sensex and Nifty trading at their highest levels in nearly two months. The rebound is being powered by a sharp reversal in foreign investor flows, easing crude oil prices and improving corporate earnings.
At 9:46 AM, the Sensex was up 352.20 points (0.46%) at 77,270.05 and the Nifty 50 was up 106.40 points (0.45%) at 23,917.25. Market breadth was firmly positive, with about 2,233 shares advancing against 1,020 declining.
Five sessions of gains: how the rally built up
Tuesday's session set the tone. The Sensex surged 1,225 points (1.62%) to close at 76,917.85 — a level last seen on 1 September — while the Nifty jumped 370 points (1.58%) to 23,810.85, its highest close since 4 September. Over the four sessions to Tuesday, both indices gained around 5%.
| Index | Tuesday close (3 Nov) | Tuesday change | Wednesday early trade (9:46 AM) |
|---|---|---|---|
| Sensex | 76,917.85 | +1,225 pts (+1.62%) | 77,270.05 (+352.20 pts) |
| Nifty 50 | 23,810.85 | +370 pts (+1.58%) | 23,917.25 (+106.40 pts) |
Banking and FMCG stocks led Wednesday's early trade. State Bank of India traded at ₹980.55, up 1.06% from its previous close of ₹970.25, while ITC gained 1.02% to ₹276.70. Technology stocks, by contrast, came under pressure, mirroring weakness in Asian tech shares.
Why markets are rising: FII buying returns
The single biggest driver is the sudden reversal in foreign institutional investor (FII) flows. FIIs bought equities worth ₹6,836.81 crore on Tuesday — their third consecutive session of buying. In five of the last six trading sessions they have purchased stocks worth ₹18,661 crore, and NSDL data shows net purchases of about ₹25,400 crore over the past 11 sessions.
Domestic institutional investors (DIIs), meanwhile, sold ₹3,678 crore on Tuesday, extending their selling streak to three sessions — a divergence that underlines how much of this rally is FII-led.
"The principal factor that has changed the market mood is the sudden reversal of the FII stance towards India," said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that sustained FII selling had weighed on the market for the last two years, and that improving corporate earnings and attractive large-cap valuations are providing fundamental support.
Analysts also point to global diversification: concerns over the durability of the AI trade may be pushing some global investors toward markets like India, which are considered less exposed to an AI unwind. Greater comfort on the rupee is helping too — the currency strengthened 14 paise to 94.61 against the US dollar in early trade on Wednesday, after closing at 94.75 on Tuesday.
Other supports: crude cools, earnings improve
- Crude oil: Brent crude slipped to around $103 a barrel, down more than 10% in two sessions from an earlier high of $115, easing inflation and import-bill worries.
- Earnings: State Bank of India reported a 14% rise in September-quarter net profit to ₹23,038 crore, while the National Stock Exchange posted a 23% jump in consolidated net profit to ₹2,578 crore on total income of ₹4,554 crore (up 9%).
- US midterms: Investors are watching the US midterm election outcome for its implications for energy prices, global trade and AI spending. Asian markets were mixed to weaker on Wednesday amid that uncertainty.
What to watch: key Nifty levels
Technically, analysts say the Nifty needs to hold above 23,700 for the bullish bias to stay intact. The immediate support zone is 23,600–23,650, with resistance at 23,900–24,000. A sustained move above 24,050 could open the way to 24,400, while failure to cross 24,000 may signal consolidation in the 23,200–24,000 range after a sharp ~1,400-point rise in seven sessions.
| Nifty 50 level | Significance |
|---|---|
| 23,600–23,650 | Immediate support zone |
| 23,700 | Break below would turn sentiment bearish |
| 23,900–24,000 | Immediate resistance zone |
| 24,050 | Breakout level; opens path to 24,400 |
Analysts caution that some cooling off after such a sharp run would be healthy, and traders should avoid chasing the upside — dips toward support, if held, look like the better entry.
What this means for investors
The rally so far is led by large-caps, which are best placed to attract big FII flows, with leading financials seen as having more room to move. But experts warn the rally may not turn into a sustained breakout unless crude prices stabilise and India's macroeconomic outlook keeps improving. For long-term investors, the message is familiar: strong earnings and reasonable valuations matter more than any single session's move.
Related reading on IPOlist.in: why the rupee fell to record lows in October, the RBI's October repo rate hike to 5.50%, and record SIP inflows of ₹29,361 crore in September.
FAQs
Why are Sensex and Nifty rising on 4 November 2026?
Foreign investors bought ₹6,836.81 crore of Indian equities on 3 November, their third straight buying session, while Brent crude eased to around $103 a barrel and quarterly earnings (notably SBI and NSE) came in strong.
How much have Sensex and Nifty gained in this rally?
Over the four sessions to Tuesday, 3 November, both indices gained around 5%. The Sensex closed Tuesday at 76,917.85 and the Nifty at 23,810.85 — their highest closes in nearly two months.
What are the key Nifty levels to watch?
Support at 23,600–23,650, resistance at 23,900–24,000. A sustained break above 24,050 could take the index toward 24,400; a fall below 23,700 would weaken the bullish case.
Are FIIs buying or selling Indian stocks now?
Buying — FIIs have been net buyers in five of the last six sessions to 3 November, purchasing ₹18,661 crore in that window, reversing two years of mostly sustained selling.
Is this rally sustainable?
Analysts say large-cap leadership and FII flows support it, but sustainability depends on crude prices stabilising and the macroeconomic outlook improving. A short consolidation after the sharp run would not be unusual.
Conclusion
The five-session rally has taken the Sensex and Nifty to two-month highs, driven by a genuine shift in FII flows rather than a single-day bounce. Whether it extends toward 24,400 or pauses for consolidation, the near-term trigger remains the same: foreign flows, crude prices and the US midterm outcome. Investors should watch the 23,900–24,050 resistance band for the next directional cue.
Note: Intraday figures in this article are as of Wednesday morning trade (around 9:46 AM IST, 4 November 2026) and will change through the session. FII/DII figures are provisional exchange data.