Foreign Funds Flood Indian Stocks with Six‑Year High Purchase as Global Rally Fades

Foreign institutional investors snapped up about 150 billion rupees of Indian equities, the biggest single‑day net buy in nearly six years, as traders grew wary of a pullback after a six‑day rally. The Nifty 50 and BSE Sensex had logged gains for six straight sessions, delivering their best day in seven months on Thursday. The surge was fuelled by lower oil prices and the influx of foreign funds. Brent crude slipped below $100 a barrel, helping the Nifty 50 rise 2.4% and the Sensex 2.6%. GIFT Nifty futures were quoted at 24,460 at 7:49 a.m. IST, hinting at a softer start compared with Thursday’s close of 24,536.6. "The indicated decline is relatively contained compared with the severe global sell‑off, suggesting that lower crude and India’s limited direct exposure to the AI‑hardware trade are providing some insulation," said Hariselvan Radhakrishnan, founder and CEO of HST Wealth. Analysts warned that Friday could see volatility, consolidation and profit‑booking after the winning streak. Global cues turned risk‑averse after a sharp sell‑off in US tech shares: the Nasdaq fell 5.5%, the Dow 3.4% and the S&P 500 4.4% following weak Qualcomm results and worries over slowing AI‑infrastructure spending. Asian markets mirrored the dip, with South Korea’s Kospi down 8% and Japan’s Nikkei down 5%. Corporate earnings added mixed colour: Bharti Airtel missed Q2 profit estimates, Titan posted a one‑time gain and beat forecasts, Life Insurance Corp of India saw profit rise on group‑insurance growth, ONGC benefitted from higher crude margins, and Britannia beat expectations on steady food demand.

Context

India’s equity markets often react to global oil trends and foreign fund flows. Large foreign purchases can boost indices, but a broader sell‑off in major economies can quickly reverse sentiment, especially when domestic exposure to hot sectors like AI hardware is limited.