Indian markets witnessed one of their strongest performances in recent times, driven by broad-based buying and robust investor confidence. The highlight of the week was the rare yet powerful simultaneous participation of both foreign institutional investors (FIIs) and domestic funds in the cash market. FIIs swiftly closed their short positions, signaling a notable shift in sentiment.
This synchronized buying reflects growing optimism. Despite facing global uncertainties, India’s fundamentals remain resilient, and the market is finally showing signs of catching up with its underlying strength.
The large-cap index surged 4.6%, the mid-cap index jumped 7%—its best weekly gain since February 2021—and the small-cap index soared 8%, marking its biggest rise since June 2020.
FIIs turned net buyers after 13 weeks, purchasing equities worth ₹5,819.12 crore, while domestic institutions bought ₹4,337.83 crore worth of stocks. On the global front, markets also closed positive, with the MSCI World index gaining 0.66% for the week.
Overall, the market’s stellar performance reflects growing confidence and India’s inherent strength, paving the way for potentially strong momentum ahead. But Yes, short-term volatility can’t be ruled out, and a lot still depends on Trump’s whims and fancies, called Trump’s Tantrum. The latest of this was when he bought a Tesla car recently to help Tesla dropping sales, but it’s unlikely to significantly impact the company’s sales or ease global outrage.
