Are FIIs back with a Bang ?

Markets Overview

What a week this has been. At the end of last week, the market had gone up, but we were not expecting it to boom like this as the conflict faded into the background. The defense sector has taken the market by storm. And it’s not just India’s defense sector that is booming—global defense ETFs are also on a roll. There is a global trend favoring defense stocks, and in India, the order books for missiles have shown robust demand from many countries.

The week started with a major gap-up on Monday, jumping from around 23,800 to near 25,000 in a single day. That explosive move was the week's main highlight. Tuesday and Wednesday were quiet, while Thursday was volatile with a downside trap followed by a new recent high. Friday closed flat, wrapping up a 4.2% gain for the week.

Latest Daily Byte

The market breadth continued to show strength on May 16th. While the Nifty paused briefly, small-cap and mid-cap stocks, particularly those in the defence sector, exhibited strong momentum. A renewed interest has been observed in the broader segments of the market. Foreign Institutional Investors (FIIs) have maintained a steady pattern of buying, barring a single day of pause. Capital inflows have increased not only from overseas investors but also from domestic participants.

Rebalance Update for the week