Nifty Skyrockets 2,681 Points in 30 Days To Hit 8-Month High: Why HSBC, Citi Turn Bullish on Indian Stocks?

November has turned bullish for both the Sensex and Nifty. In the days leading up to Diwali, the indices surged 4-6%, reaching their highest levels in eight months. Foreign investors have also turned buyers over the past week, restoring confidence in the Indian stock market.

Global brokerages such as HSBC and Citi have upgraded their stance on Indian equities, with Citi raising its Nifty target to 28,000 by the end of 2027.

Nifty At Highest Level In 8 Months

The Indian stock market is closed on November 10, 2026. The Nifty 50’s last reading stood at 25,044.65, its highest level in nearly eight months. The index last traded above the crucial 25,000 mark in late February. In the past five sessions alone, Nifty surged 1,100.30 points, or 4.60%, improving its monthly and six-month performance.

The 50-stock benchmark has gained 2,681.30 points, or 11.99%, over the past month. Its six-month gain stands at 1,228.80 points, or 5.16%. However, its year-to-date performance remains in the red, with a decline of 1,101.90 points, or 4.21%. The recent rally, however, raises hopes of Nifty ending 2026 in positive territory.

A major boost has come from foreign institutional investors (FIIs), who have returned to Indian equities. Since October 31, FIIs have been net buyers, with inflows of Rs 53,171.99 crore recorded in the first trading week of November alone. On Monday, they invested Rs 7,212.22 crore. Their highest single-day buying in years came on November 5 and 6, at Rs 14,974.68 crore and Rs 13,749.82 crore, respectively, as Diwali celebrations began, as per the Stock Edge tracker.

Talking about the revival in foreign funds inflow, Jefferies note said, “After persistent selling, FPI flows have turned positive recently, with US$8.2bn net inflows since mid-Oct. Potential AI-trade reversal, any equity tax relief, resilient domestic macro, reasonable large-cap valuations and light positioning could sustain the flows. We run 3 FPI ownership focused screens to identify potential FPI flow beneficiaries, highlighting RIL, HDFCB, Axis, KMB, UTCEM, Max Health, Varun, JSWE, DLF, IHCL and Sona BLW.”

Jefferies highlighted FPIs were persistent sellers in Indian equities since Sep ’24 with net outflows of $61 billion, and the first 10 MCY ’26 were seeing large outflows of $31 billion. Since mid-October, this trend is seeing a reversal with $8.2bn of net FPI inflows; $5.8 billion came in just 6 trading days in Nov ’26.

The recent momentum suggests that bulls may be back in the Indian stock market.

Citi Raises Nifty Target To 28,000

Citi analysts believe decent earnings, lower oil prices, and more measured AI spending are aligning in India’s favor. A potential rotation away from crowded AI trades could also support foreign inflows. The brokerage has raised its Nifty target to 28,000 for 2027, implying roughly 12% upside from the previous close.

According to Citi, every $10 decline in crude oil prices could narrow India’s current account deficit by 30-40 basis points and lower inflation by roughly 50 basis points. This could also boost Nifty earnings per share by approximately 2%.

Citi expects a broader, more measured shift in AI spending. It estimates that a 100-basis-point increase in India’s active weight among emerging-market fund managers could attract up to $12 billion in inflows.

The brokerage’s higher Nifty target reflects a favorable combination of softer crude oil prices, a potential shift in AI-related investments, and resilient earnings growth.

HSBC believes India could benefit as investors diversify away from concentrated AI investments. The Indian market stands out for its depth, domestic demand orientation, and relatively resilient macroeconomic backdrop.

The brokerage also expects India’s resilient earnings growth, strong bank credit growth, and policy measures to support the rupee, making it more attractive after several months of underperformance against emerging-market peers.

HSBC has upgraded Indian equities to Overweight, although it has not provided a fresh index target. It is optimistic about banks, industrials, consumer discretionary, real estate and hospital stocks. It also sees opportunities in capital goods, cement, ports and electronics manufacturing services. Within consumer-facing sectors, it favours retailers and automobile stocks over consumer staples.

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