FII, DII Data: Foreign Investors Infused Rs 1,993 Crore In Indian Stocks On Jun-9; What Moved Sensex, Nifty?

Indian stock markets ended higher on Monday following the gains driven by FIIs and DIIs buying and Reserve Bank of India's (RBI) rate cut where it has slashed the repo rate by 50 basis points and reduced the Cash Reserve Ratio (CRR) by 100 basis points. This unexpected monetary policy easing lifted market sentiment and drove strong gains in banking and financial stocks.

The benchmark Nifty 50 jumped 100.15 points, or 0.4%, to close at 25,103.20, its highest closing level in eight months and marking its fourth straight session of gains. The Sensex also gained, rising 256.22 points, or 0.31%, to end at 82,445.21.

In the Nifty50 index, 39 stocks closed in the green, while 11 stocks ended in the red.

FII and DII Activity

Foreign Institutional investors (FIIs) turned net buyers of Indian stocks on Monday, following the same path as last week. They purchased equities worth Rs 1,992.7 crore, as per provisional data from the Bombay Stock Exchange.

Domestic institutional investors (DIIs) remained consistent buyers, investing Rs 3,503.79 crore worth of stocks. This marked the 15th straight session of net buying by DIIs, showing strong domestic confidence in the market.

Major Nifty Indices Lead the Rise

Banking stocks led the rally, with the Nifty Bank index hitting a record high during the day. Apart from the realty sector, all major sectoral indices ended in the green. Notably, PSU Banks, Information Technology (IT), Oil & Gas, and Power sectors each rose by around 1%.

The BSE Midcap and Smallcap indices also ended1% higher, with the Nifty Smallcap index hitting a new five-month high. The Nifty Midcap 100 rose 1.13%, while the Nifty Smallcap 100 surged by 1.57%.

'Financial stocks extended their rally in Indian markets, driven by the RBI's supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps. The positive U.S. jobs data and renewed optimism over U.S.-China trade talks lifted global sentiment. Domestically even large caps expressed renewed momentum led by FIIs inflows." Vinod Nair, Head of Research, Geojit Investments Limited said in a note.

Top Gainers & Losers

Among the top-performing stocks were Jio Financial, which climbed 3.30%, Kotak Bank (up 3.03%), and Bajaj Finance (up 2.55%). On the flip side, the major losers included Eternal (-1.94%), ICICI Bank (-1.66%), and Titan (-0.72%).

Trading activity, however, saw a minor slowdown, with volumes on the NSE cash market dipping by 11% compared to last Friday.

Bullish Technical Outlook

Technically, by decisively breaking out from its consolidation range of 24,500-25,100, the Nifty has clearly re-entered a bullish momentum phase. The index now likely to extend this rise towards 25,307, a level derived from the 78.6% Fibonacci retracement of the previous price fall from 26,277 to 21,743. On the lower side, the immediate support level has now shifted upwards to 24,900 quoted Nandish Shah, Deputy Vice President of HDFC Securities.

Global Cues

U.S. stocks were mostly flat on Monday as traders awaited details from the latest U.S.-China trade talks, with optimism growing after a recent phone call between Presidents Trump and Xi.

The S&P 500 rose by less than 0.1%, the Nasdaq Composite gained about 0.15%, while the Dow Jones Industrial Average dipped 42 points, or 0.1%, shortly after the opening bell.

In Asia, markets saw broader gains as investors digested new economic data from China. Mainland China's CSI 300 rose 0.29% to 3,885.25, Hong Kong's Hang Seng Index climbed 1.63% to 24,181.43, Japan's Nikkei 225 advanced 0.92% to 38,088.57, and South Korea's Kospi index increased 1.55% to 2,855.77.