The Bombay Stock Exchange's benchmark Sensex index breached the 95,000-point mark for the first time in its history on Monday, driven by a surge in foreign institutional investor inflows and stronger-than-expected first-quarter corporate earnings across banking, technology, and fast-moving consumer goods sectors.

FIIs net bought ₹18,400 crore worth of Indian equities in the week ending July 11, reversing the outflow trend that had characterised the first quarter of FY27 amid global risk-off sentiment. The reversal was triggered by US Federal Reserve signals that dollar interest rates had peaked for the current cycle.

Banking and financial services stocks led the rally, with HDFC Bank gaining 6.8 per cent over the week on the back of quarterly results showing 18 per cent growth in net interest income. Information technology exporters also rose on expectations that a weaker dollar and recovering US technology spending will benefit Indian IT firms.

Market analysts caution that valuations at current levels price in near-perfect execution of FY27 corporate earnings targets. "The market has moved ahead of fundamentals in several pockets. Selectivity matters now more than ever," said a senior fund manager at a leading domestic asset management firm.