FII inflows lift Nifty above 25,000 as Indian equities rally

Indian equity markets have staged a robust recovery over the past seven days, with benchmark indices surging more than 10 percent amid renewed foreign investor interest. The Nifty index has moved past the 25,000-mark, while the Sensex has mirrored the gains, signaling strong momentum in domestic equities.

The rally has been characterized by strong performance in banking stocks, which have led the broader market advance. Analysts attribute the surge to a combination of factors, including improved sentiment among foreign institutional investors who have resumed purchases after a period of selling pressure.

The resurgence in Indian markets contrasts sharply with recent weakness in US equities, where concerns over economic growth and interest rate trajectories have weighed on investor sentiment. This divergence has made Indian equities an attractive destination for overseas capital seeking returns in emerging markets.

Market participants note that the week-long rally has restored optimism among domestic investors following a period of consolidation. The return of FII flows is seen as a positive indicator for the sustainability of the current uptrend, though analysts caution that global economic headwinds remain a risk factor to monitor in coming weeks.