Business · India Bureau
Indian markets surge on foreign investor buying, auto and banking stocks shine
Domestic benchmark indices climbed nearly 1 percent on Thursday, extending gains to a second consecutive session as foreign portfolio investors resumed buying amid selective profit-taking. Auto and banking stocks emerged as the primary drivers of the upswing.
LSN India ·
Benchmark indices delivered broad-based gains on the back of renewed foreign inflows, with the Sensex and Nifty both posting robust advances. The rally was characterized by strength in heavyweight sectors, particularly automobiles and financials, which attracted considerable investor interest throughout the trading session.
Foreign portfolio investors maintained their positive stance on Indian equities, channeling fresh capital into the market despite some localised profit-booking by domestic investors. The dual dynamic—overseas buying offsetting selective selling—provided the foundation for sustained market momentum.
The auto sector benefited from renewed optimism about consumption trends, while banking stocks capitalised on expectations around interest rate trajectories and credit growth. Mid and large-cap segments participated in the rally, though market breadth remained relatively balanced as investors remained selective in their stock picks.
Market analysts attributed the sustained recovery to improving sentiment around foreign fund flows and a stable macroeconomic backdrop. The two-day winning streak suggested investor appetite had returned after earlier weakness, with the near 1 percent gain underscoring steady rather than euphoric market conditions.