Metal stocks lead market rally as domestic institutions cement dominance over FIIs

Markets closed marginally higher on Tuesday, with benchmark indices extending gains for the third consecutive session, driven by strong buying in metal and auto stocks even as banking and IT shares witnessed profit-booking.

The BSE Sensex rose 208.17 points or 0.25 per cent to close at 84,273.92, while the NSE Nifty gained 67.85 points or 0.26 per cent to settle at 25,935.15.

In a significant structural shift, domestic institutional investors (DIIs) have now overtaken foreign institutional investors (FIIs) in Nifty50 ownership, reflecting the deepening of India’s domestic capital base.

“DII ownership overtaking FIIs in the Nifty50 is primarily a structural shift, though accelerated by cyclical global risk-off sentiment,” said Gaurav Bhandari, CEO of Monarch Networth Capital.

“Over the last few years, domestic institutions, driven by SIP-led mutual fund inflows, insurance allocations and retirement savings have become a permanent and predictable source of capital.”

Eternal emerged as the top gainer on the Nifty50, surging 5.19 per cent to close at ₹303.85, followed by Tata Steel which jumped 2.90 per cent to ₹207.85.

ONGC gained 1.88 per cent to ₹271.60, while M&M advanced 1.87 per cent to ₹3,677.00 and Bajaj Auto rose 1.79 per cent to ₹9,762.00.

On the losing side, HCL Technologies declined 2.03 per cent to ₹1,569.50, Bajaj Finance fell 1.82 per cent to ₹965.30, Dr Reddy’s dropped 1.55 per cent to ₹1,255.70, Shriram Finance lost 1.33 per cent to ₹1,048.60, and Bharti Airtel slipped 1.31 per cent to ₹2,011.50.

“Domestic equities continued their upward momentum, supported by the US trade agreement and positive cues from key Asian markets,” said Vinod Nair, Head of Research at Geojit Investments Limited. “A strong resurgence in FII inflows, coupled with rupee appreciation, is further bolstering the investor sentiment, although intermittent profit-booking was visible across sectors.”

Broader market indices outperformed the benchmarks, with the Nifty Midcap 100 rising 0.49 per cent to 60,735.90 and the Nifty Smallcap 100 gaining 0.38 per cent to 17,451.20.

Among sectoral indices, Nifty Media led the gains, rallying over 2.70 per cent, while Nifty Auto advanced 1.4 per cent. However, Nifty Pharma and Nifty PSU Bank ended in the red. The Nifty Bank closed marginally lower at 60,626.40, down 0.07 per cent.

Market breadth remained healthy with 2,620 stocks advancing against 1,631 declines on the BSE, while 127 stocks hit 52-week highs and 56 touched 52-week lows.

“Indian equity markets extended gains for the third straight session, supported by broad-based buying and positive sentiment in select large-cap stocks,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk. “Food delivery and quick commerce stocks outperformed, with Eternal and Swiggy rising to multi-week highs on strong volumes.”

On the currency front, the rupee strengthened 18 paise to close at 90.58 against the US dollar. “Rupee traded firm with gains of 0.13 at 90.57, supported by a softer dollar index below 97 and mild FII inflows,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The recent US-India trade deal has also provided structural support to sentiment, limiting downside pressure.”

In commodities, gold traded in a tight range with MCX Gold maintaining support near ₹1,55,000 and resistance around ₹1,60,000. “Participants are awaiting key US retail sales data, followed by unemployment and non-farm payroll numbers later in the week,” Trivedi added.

However, concerns emerged for the textile sector following the US-Bangladesh trade deal. “Following the US-India trade deal optimism, FIIs have become buyers from few trading sessions with a major inflow of ₹2,258 crore yesterday,” said Abhinav Tiwari, Research Analyst at Bonanza.

“Textile sector can face some pressure following the US Bangladesh trade deal with US slashing the tariffs on them to 19 per cent from 20 per cent.”

Looking ahead, market participants will focus on key global data releases and the final leg of Q3 earnings. “We reiterate our bullish stance on the Nifty and continue to recommend a buy-on-dips approach with a focus on careful stock selection,” said Ajit Mishra, SVP Research at Religare Broking.

“Some consolidation around current levels within a narrow range is likely before the index makes another attempt to decisively cross the 26,000 hurdle.”

Published on February 10, 2026