Foreign investors fuel sharp rally, Indian markets set for muted start

Foreign portfolio investors poured 125.63 billion rupees ($1.34 billion) into Indian shares on Wednesday, driving a sharp rally that is expected to level off as markets open on Thursday. The inflow helped the Nifty 50 close at a more‑than‑eight‑month high of 25,255.05 and pushed the Nifty 50 and Sensex up 9.6% and 10% respectively in November. A drop in Brent crude to $91.8 a barrel and cooling global AI trade added further support, while the U.S. 10‑year Treasury yield near 4.99% could limit any immediate upside, said Hariselvan Radhakrishnan, founder and CEO of HST Wealth. GIFT Nifty futures were at 25,270 at 8:00 a.m. IST, signalling a subdued opening. MSCI’s broad Asia‑Pacific index slipped 0.1%, weighed down by Hong Kong stocks, as the MSCI India index added Adani Green Energy, Coforge, Life Insurance Corporation of India and Meesho, and removed PI Industries. Non‑bank lender Bajaj Finance launched a share sale worth over $1 billion at a floor price of 992.25 rupees, while Tata Power named Sanjay Banga as CEO and reported a near‑49% jump in second‑quarter profit on stronger power generation and renewable growth. ## Context The rally shows how foreign money, cheaper oil and a pause in the AI hype can lift Indian equities, even as higher U.S. yields act as a brake on further gains.