Market Experts Cite FII Flow and AI Slowdown Behind Monday Rally

Mumbai, November 9 – Positive signals from abroad and a rally in financial‑banking equities lifted India’s benchmark indices into the green on Monday.

The Sensex added 327.89 points, or 0.4%, to stand at 81,327.29. The Nifty rose 90 points, a 0.36% gain, closing at 25,076.40.

Sector performance showed the Nifty Financial Services 25/50 index leading with a 0.57% rise, followed by the Nifty PSU Bank index up 0.47%. Private banking stocks were up 0.37%, healthcare climbed 0.35%, while metals and pharma posted gains of 0.33% and 0.24% respectively. The IT sector lagged, with the Nifty IT index falling 0.47% and the mid‑cap IT and telecom segments each slipping 0.39%.

Commentators attribute the latest up‑turn to a stronger investor mood after last week’s sharp rally, reinforced by several key drivers: vigorous foreign institutional investor purchases, reasonably priced equities, lower crude oil costs, declining U.S. bond yields and better Q2 earnings outcomes for corporates. They also highlighted that a slowdown in AI‑related spending and a rapid decline in AI‑centric stocks have altered global market dynamics.

Experts expect foreign institutional investors to keep buying Indian equities, which should support large‑cap stocks further. The domestic market retained its upbeat atmosphere after the previous week’s surge, buoyed by continued FII buying and improving global cues, with the Nifty on track for an approximate 8.6% year‑to‑date rise. On the world stage, U.S. equities finished the prior session higher, with the Nasdaq up 1.09% and the S&P 500 up 0.31%. U.S. equity futures and Asian markets rose on Monday after a volatile week, though technology‑heavy Asian markets fell amid worries about chip demand. Additionally, crude oil prices dropped after former President Donald Trump said that progress in peace talks lowers the likelihood of further attacks on Iran.