FIIs turn net buyers after one month as they purchase Indian shares worth ₹695 crore

Besides, lower crude oil prices in the international markets and a weak dollar against major currencies overseas also bolstered sentiment.

The m-cap of BSE-listed companies increased by ₹7.06 lakh crore from ₹392.80 lakh crore registered on Monday, March 17, to ₹399.86 lakh crore.

Sectorally, all the indices rallied with realty stocks leading the pack. Other significant sectoral gainers were consumer durables, auto, and industrials.

The broader market, too, participated in the rally and outperformed the headline indices. The Nifty Midcap 100 soared 2.18% higher to settle at the 49,516.90 level, while the Nifty Smallcap 100 advanced 2.71% to the 15,374.70 level.

According to analysts, euphoria across global equities boosted the confidence of local investors, which translated into value buying across the sectors. As markets were in a bearish mode over the past few weeks and valuations had become a bit attractive, investors seized the opportunity in the beaten-down sectors.

However, it would be difficult to sustain the gains due to global challenges and fears of slowing domestic growth due to Trump's threat to impose tariffs on key economies, including India.

The net buying by foreign investors came after a gap of one month. According to available information, the last time overseas investors purchased Indian equities was on February 18, when they bought shares worth ₹8,216 crore.

The domestic institutional investors (DIIs) net bought Indian equities worth ₹2,534.75 crore, NSE data showed.