Foreign institutional investors (FIIs) turned net buyers of Indian equities for the week, ending a 10-week selling spree, and net bought Rs 6,305 crore worth of shares.

FIIs were net buyers in three of the last five trading sessions, helping Indian benchmark indices in a sharp rebound supported by improving risk sentiment after the US Federal Reserve left interest rates unchanged.

Domestic institutional investors (DIIs) continued to remain net buyers for the 11th consecutive week, although purchases slowed to Rs 3,110 crore from Rs 10,942 crore in the previous week as they booked profits into the rally.

Month-to-date, FII net selling has narrowed to Rs 45,162 crore, while DII net purchases stood at Rs 62,220 crore.

Analysts said that the reversal in FII flows is an encouraging signal for market sentiment, though elevated crude and global event risk could temper the momentum.

Market participants will closely track the outcome of the US midterm elections in the coming week. Additionally, movements in Brent crude prices, developments in the US-Iran and Russia-Ukraine conflicts, and ongoing quarterly earnings announcements will remain key factors influencing investor sentiment, they added.

India's benchmark indexes recovered most of the losses incurred in the previous week, although elevated Brent crude prices above $110 a barrel continued to cloud the macroeconomic outlook. The Nifty gained 2 per cent during the week to close at 23,053.10 after touching an intraweek high of 23,118.

Bank Nifty gained 0.7 per cent during the week, while broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 recouping part of the previous week’s decline, rising 2.7 per cent and 4 per cent, respectively.

A recent report from brokerage Bernstein said Nifty 50 is likely to touch 25,000 in December 2026 down from the previous 26,000 target, adding that reduction in long-term capital gains (LTCG) alone cannot trigger sustained foreign institutional investor (FII) inflows.