Foreign investors are back in Indian stocks, and Tuesday proved it in style. The Sensex jumped 1,225 points to close at 76,917.85, while the Nifty climbed 370 points to 23,810.85, as overseas funds pumped in Rs 6,837 crore in a single session, their biggest one-day purchase in more than a year.
It was the fourth straight day of gains for Indian markets, a run that has lifted the Nifty more than 4 percent in four sessions. What changed? A mix of cooling crude oil prices, strong company results, festive demand ahead of Diwali, and growing hope that the government may rethink the long-term capital gains tax for foreign investors.
Domestic institutions, interestingly, moved the other way. They sold shares worth Rs 3,679 crore on Tuesday, even as foreign funds bought heavily. The last time foreign investors bought more in a single day was October 28, 2025, when they picked up shares worth Rs 10,340 crore.
What drove Tuesday’s rally
Three forces came together on Tuesday. First, crude oil eased. Brent crude, which had touched 108 dollars on Monday, slipped to 104 dollars overnight before settling around 105 dollars during Indian trading hours. For an oil-importing country like India, cheaper crude is good news for everything from fuel prices to company profit margins.
Second, earnings impressed. FMCG giants ITC and Marico reported strong quarterly numbers, and Marico’s shares jumped 10 percent after its results. That set the tone for the whole consumption basket, with the Nifty FMCG index rising 3.65 percent, the best sectoral showing of the day after capital markets.
Third, sentiment turned. Traders are betting that foreign investors, who have sold Indian shares relentlessly for much of the last two years, are finally returning. Talk of a possible review of the capital gains tax on foreign investors has added to the optimism, though no decision has been announced yet.
The winners and the losers
Almost everything rose on Tuesday. Only 11 of the 50 Nifty stocks fell, and the three heavyweights Bharti Airtel, HDFC Bank and ICICI Bank together accounted for nearly half of the Rs 2.4 lakh crore jump in the combined market value of Nifty companies.
- Bharti Airtel rose 3.8 percent, adding Rs 46,900 crore to its market value.
- HDFC Bank gained 3.6 percent, adding Rs 39,300 crore in market value.
- ICICI Bank climbed 2.7 percent.
- BSE Ltd topped the gainers with a 5.03 percent rise, followed by Nestle India at 4.47 percent and Tata Consumer Products at 4.29 percent.
- Marico jumped 10 percent after its second-quarter results, while Britannia gained 6.4 percent.
The capital markets index was the star sector, up 4.53 percent, with Multi Commodity Exchange up 7.4 percent and Angel One up 7 percent. These companies gain directly when trading volumes rise, and Tuesday was a heavy-volume day.
Not everyone joined the party. Power Grid fell 3.04 percent, State Bank of India slipped 1.70 percent and ONGC lost 1.13 percent. Public sector bank stocks were the weakest pocket of the market, with the Nifty PSU Bank index down 1.27 percent. Oil producers also fell, since lower crude prices mean lower realisations for them.
Why foreign money matters now
Foreign investors have been net sellers of Indian equities for most of the last two years, pulling out lakhs of crores as global interest rates stayed high and the rupee weakened. Their return, even for a few sessions, changes the mood of the whole market, because foreign flows decide whether rallies have legs or fizzle out.
Tuesday’s Rs 6,837 crore purchase is still well below the October 2025 record of Rs 10,340 crore, but it is the strongest signal yet that the selling may be easing. Analysts caution, however, that one day does not make a trend. What happens next depends on crude oil, the outcome of the US midterm elections, and whether the government actually moves on the capital gains tax question in the February Budget.
The rupee, meanwhile, traded nearly flat at 94.87 to the dollar on Tuesday after touching a 10-day high of 94.62 in early trade, as oil prices rebounded on reports of fresh US strikes on Iran. Currency watchers say the rupee’s direction will stay tied to oil and foreign flows in the coming days.
What to watch next
Traders have already shifted their bets higher. For the November 9 weekly expiry, the largest Nifty call positions are at 24,000 and 24,500, suggesting the market expects more upside, while the biggest put positions sit at 23,000 and 22,000.
Analysts advise caution after such a sharp four-day run. “Markets may remain positive in the near term, but some profit booking cannot be ruled out after the recent rally,” said Somil Mehta of Mirae Asset Sharekhan. “Ahead of Diwali, global developments, crude oil prices, foreign investor flows and corporate earnings will remain key factors.”
For now, though, the mood has flipped. After months of foreign selling and choppy trading, Dalal Street heads into the festive season with its strongest week in a long time, and with foreign money finally flowing in rather than out.
FAQs
How much did the Sensex gain on Tuesday?
The Sensex rose 1,225.07 points, or 1.62 percent, to close at 76,917.85 on November 3, 2026.
How much did foreign investors buy on Tuesday?
Foreign institutional investors made net purchases of Rs 6,837 crore worth of Indian equities, their biggest single-day buying since October 2025.
Why did the market rally for a fourth straight day?
Easing crude oil prices, strong quarterly results from companies like ITC and Marico, festive demand ahead of Diwali, continued foreign inflows, and hopes of a capital gains tax review all supported the rally.
Which sectors gained the most?
The Nifty Capital Markets index rose 4.53 percent and the Nifty FMCG index gained 3.65 percent. Real estate, private banks and financial services also did well, while PSU banks lagged.
Is the foreign selling finally over?
It is too early to say. One strong day of buying is encouraging, but analysts say the trend will depend on crude oil, global cues, the US midterm outcome and any government move on capital gains tax.
Markets can be volatile, and this article is a news report, not investment advice. Investors should consult a registered financial adviser before making investment decisions.
