The Nifty crossed 23,400 in a two‑day rally fueled by easing Middle East tensions, foreign institutional buying, and strong FMCG earnings. AlphaScala scores show the move is macro‑driven.
The Nifty 50 crossed 23,400 on Tuesday, capping a two-session surge that lifted the Sensex by roughly 1,000 points. The rally was broad, with FMCG, IT, and financial stocks all participating.
ETMarkets attributed the move to three factors: easing Middle East tensions, a pickup in foreign institutional flows, and strong quarterly earnings from leading FMCG companies. The geopolitical risk premium that weighed on Indian equities through March unwound as the region's hostilities showed no further escalation. That shift lifted sentiment across emerging markets, and Indian stocks caught the bid early.
Foreign portfolio investors turned net buyers Monday after weeks of mixed activity, traders said. The buying added momentum to a rally that had been building through the previous week’s range. Domestic mutual funds were also net buyers, giving the market a steady floor.
FMCG stocks led the charge. Hindustan Unilever and Nestlé posted gains above the index, while the sector’s weight in the Nifty drove the bulk of the move. The IT and financial sectors added support, with Infosys, Wipro, and HDFC Bank among the most active names on the NSE.
The composition of the rally suggests a macro repricing rather than stock-specific catalysts. AlphaScala’s proprietary scores for the three most active stocks put HDFC Bank at 40 (Mixed), Infosys at 57 (Moderate), and Wipro at 46 (Mixed). None signal strong momentum, supporting the view that the broader flow story is the driving force.
A previous risk-off episode in March saw the Nifty hit resistance near 23,200 before sliding back. This time, the index cleared its 50-day moving average in the process, a level that had capped gains for two weeks. The next test will be whether the Nifty can hold above 23,400 through the week. The RBI’s policy meeting next month offers the next scheduled catalyst for rates and liquidity.
For a deeper look at the FMCG sector’s role, see our earlier coverage: FMCG Leads Market Rally as Geopolitical Risk Premiums Recede.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.