Indian Equities Rebound After Sharp Weekly Decline, Institutional Activity in Focus

Benchmark indices staged a cautious recovery Monday, with the Sensex rising 0.38% to 80,735.93 and the Nifty gaining 0.40% to 24,752.85. This follows their steepest weekly decline in seven months, as investors weigh persistent foreign outflows against domestic institutional support.

Foreign Institutional Investors remained net sellers, offloading ₹30,143 crore worth of equities in September through Friday. Domestic institutions provided counterbalance, absorbing ₹5,843 crore of selling pressure on September 26 alone. "Markets are attempting a rebound, but external risks demand selective positioning," said Enrich Money CEO Ponmudi R.

Sectoral performance showed divergence, with Bharat Electronics leading gainers at +2.55% while Axis Bank topped losers at -1.55%. The rebound occurs despite lacking clear catalysts, suggesting technical factors may be driving short-term flows.