Indian equities delivered their strongest weekly performance in six years, bucking a global market rout as falling crude oil prices, a strengthening rupee and aggressive foreign fund buying fuelled a spectacular rally on Dalal Street.

The Sensex surged 8.82% during the week, while the Nifty gained 8.58%, marking their best weekly performance since February 5, 2021. The gains stood in sharp contrast to the sell-off across global markets, triggered by a technology-led rout on Wall Street.

Among Asian markets, South Korea was the worst hit, plunging 6.02%, followed by Japan (5.96%) and Taiwan (4.51%). Besides India, Indonesia was the only other major Asian market to end the week in positive territory, posting a modest gain of 0.40%.

The rally gathered further momentum on Friday, with both benchmark indices climbing more than 2% and extending their winning streak to seven consecutive sessions.

The Sensex jumped 1,718.01 points, or 2.17%, to close above the 81,000-mark for the first time in eight months at 81,028.02. The Nifty surged 493.75 points, or 2.01%, to reclaim the 25,000-mark after eight months, settling at 25,030.35.

The scale of the turnaround has been remarkable. Over the past seven sessions, the Sensex has gained 7,782 points, or 10.62%, while the Nifty has advanced 2,331 points, or 10.27%. The rally has added a staggering Rs 30.4 lakh crore to investors’ wealth, taking the total market capitalisation of BSE-listed companies to Rs 503.07 lakh crore.

Foreign portfolio investors (FPIs) have emerged as the driving force behind the rebound, pumping Rs 51,918 crore ($5.5 billion) into Indian equities over the seven sessions. Domestic institutional investors (DIIs), in contrast, sold shares worth Rs 23,090 crore.

The reversal in foreign flows has been equally striking. Over the past 15 trading sessions, FPIs have purchased shares worth Rs 69,978 crore ($7.4 billion), while DIIs have offloaded shares worth Rs 13,806 crore.

“Despite weak global market cues, domestic equities maintained their bullish momentum, with both the Sensex and Nifty closing above crucial psychological levels as short covering continued for the seventh consecutive session,” said Ankur Punj, Managing Director, Equirus Wealth.

Foreign inflows have been supported by declining crude oil prices and a stronger rupee, amid hopes of a possible resolution to the US-Iran conflict, Punj added.

“Indian equities defied a global rout, extending their winning run as investors treated the home market as a relative safe harbour amid turmoil abroad. Wall Street was hammered by a sharp tech sell-off as investors weighed the prospect of tougher regulation under Democrats,” said Vinod Nair, Head of Research, Geojit Investments.

Large private banks have emerged as major beneficiaries of the shift in investor preference, with their deep liquidity and attractive valuations drawing foreign money. A sharp weekly decline in crude oil prices, easing US Treasury yields and a firmer rupee have further enhanced India’s relative appeal, Nair added.

The rally was broad-based, with all sectoral indices posting gains over the seven sessions. Realty led the charge, surging 12.4%, followed by financial services, private banks, oil and gas, and consumer durables.

Significantly, all 50 Nifty constituents ended the seven-session period in positive territory. Bajaj Finance, IndiGo, Shriram Finance, Titan Company and HDFC Bank were among the biggest gainers, each rising more than 15%.