Indian markets surged on October 13, 2026, with the Sensex rising 1,109 points as domestic institutions purchased Rs 2,439 crore in shares, offsetting foreign outflows of Rs 1,305 crore. This resilience comes amid a year-long trend of heavy selling by foreign investors, which has totaled over Rs 3 lakh crore throughout 2026.
The Indian equity market displayed notable resilience on Tuesday, October 13, 2026, as domestic institutional investors (DIIs) stepped in to counter aggressive selling by foreign institutional investors (FIIs). The BSE Sensex closed 1,109 points higher at 73,033.78, while the Nifty 50 climbed 1.60% to finish at 22,721.95.
This session highlighted a persistent pattern observed throughout 2026: a tug-of-war between global and local capital. FIIs, pressured by rising US Treasury yields—which have remained above 5.2%—and a strong US dollar, net sold Rs 1,305 crore worth of equities. This continues a broader exit trend that has seen foreign investors offload more than Rs 3 lakh crore from Indian equities so far this year. Global funds have been reallocating capital toward other regions, particularly those with strong exposure to artificial intelligence, leading to sustained outflows from India.
Despite this foreign exodus, domestic liquidity continues to act as a stabilizer. DIIs net purchased Rs 2,439 crore on Tuesday, ensuring that foreign selling did not result in a deeper market correction. This steady inflow of domestic capital, driven by retail investment through mutual funds and direct participation, is currently providing a floor for Indian equity valuations.
Market sentiment also received a lift from the Information Technology (IT) sector, which jumped 5.2% during the session. Companies like HCL Technologies contributed to this momentum following positive quarterly performance updates. Additionally, relief sentiment regarding commentary on capital gains and securities transaction taxes helped broader market indices, including midcap and smallcap segments, to end the day in positive territory.
While the rally on October 13 showed that the market has a strong support base, investors should keep a close watch on ongoing macroeconomic pressures. The primary risks remain the global trend of high US interest rates, which can keep foreign capital away, and the impact of elevated crude oil prices on India’s import bill and inflation.
For investors, the key monitorable will be the sustainability of DII inflows. As long as domestic institutions continue to absorb foreign selling, the market may maintain its resilience. However, any significant reduction in this domestic support, combined with continued global uncertainty, could lead to increased price swings in the coming weeks.