Bluechips lift Street to a 13-month high

Eyes on Q3 earnings as Nifty crosses 26,200, FPIs turn positive

- Dipti Sharma & Ram Sahgal

Optimism lit up the Street on Thursday as the Nifty touched a 13-month high, with index heavyweights surging as the US-trade deal appeared closer than ever before. Buying in large caps and derivatives short-covering may sustain the rally, experts said, even as caution prevails over how long the rally lasts.

The Nifty pushed past 26,200 for the first time since its intraday lifetime peak of 26,277.35 on 27 September last year. Powered by HDFC Bank and Reliance Industries, the Nifty closed 0.54% higher at 26,192.15, near its record close of 26,216.05 on 26 September, 2024.

The Sensex closed 0.52% higher at 85,632.68, a whisker away from its own peak of 85,836.12. HDFC Bank has a 12.78% weight in the Nifty while Reliance has 8.53%.

The rally was led by cash buying as well as derivatives short-covering, exchange data showed. Foreign portfolio investors (FPIs) net bought a provisional ₹283.65 crore worth of shares, while DIIs lapped up ₹824.46 crore. FPIs cut their net bearish index futures bets by buying back contracts worth ₹405 crore. FPIs also turned a tad more optimistic, increasing bullish call options on Nifty and Bank Nifty to 56,530 contracts on Thursday from 22531 the previous day.