Stock Market Update: Nifty50 and Sensex extend gains for a sixth straight day, driven by domestic inflows

MUMBAI, India – The Indian equity market continued its bullish run on Friday, with the benchmark Nifty50 and Sensex extending their winning streak for an impressive sixth consecutive session. The rally, which has been remarkably resilient, is being powered primarily by consistent buying from Domestic Institutional Investors (DIIs) and retail investors, offsetting any selling pressure from their foreign counterparts.

The Sensex closed up by 350 points, finishing at a new high of 80,500, while the Nifty50 added 120 points, settling comfortably at 25,250. The broad-based rally reflects a strong domestic investor sentiment, driven by positive macroeconomic data and robust corporate earnings reports.

Key Drivers of the Rally

Market analysts attribute the rally's strength to a new-found confidence among local investors. Unlike previous rallies that were heavily dependent on Foreign Institutional Investor (FII) flows, the current upswing is being driven by consistent and strong domestic liquidity. Data from the exchanges shows that DIIs have been net buyers for the entire week, pouring billions of rupees into the market. This has been supported by a significant increase in retail participation through Systematic Investment Plans (SIPs) and direct equity investments.

Favorable economic indicators, including a stable inflation rate and healthy industrial production numbers, have also bolstered investor confidence. The market's resilience, even in the face of global uncertainties and a fluctuating dollar, underscores the belief that India's growth story remains strong and domestically insulated.

Sectoral Performance and Outlook

The rally was broad-based, with almost all major sectors participating in the upswing. Banking and financial services stocks were the top performers, buoyed by positive earnings forecasts and a strong credit growth outlook. Consumer goods, IT, and automobile sectors also saw significant gains.

Experts believe the market's trajectory looks promising in the short to medium term. "The rally is healthy because it is not concentrated in just a few stocks or sectors," said a Mumbai-based market analyst. "The liquidity from DIIs and retail investors is a new pillar of strength for the Indian market. While some profit-booking can be expected after such a long winning streak, the overall sentiment remains firmly bullish."