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Nov 09, 2026 New

Why Banks Often Lead a Rebound

Rates, Flows and Index Weight

On November 5, the Nifty rose 2.4 percent. The Nifty Bank index rose 3.45 percent to 57,847, with every stock in the index in the green, and the Nifty Financial Services index rose 4.24 percent to 26,667. This is a common pattern. When the market rebounds after a fall, banks and other financial stocks often move first and move more. This article explains why. There are three main reasons, which are rates, flows and index weight, and each of them is easy to understand once you see how it works.

Trending Articles

3 min read | Nov 09, 2026

Why Banks Often Lead a Rebound: Rates, Flows and Index Weight

5 min read | Nov 06, 2026

When Foreign Investors Turn Buyers Again: What Usually Changes First

After two months of heavy selling, the flow numbers have started to look different. Foreign portfolio investors withdrew ?45,161 crore from Indian equities in October, which was the second month in a row of heavy selling, but they put in about ?6,300 crore in the final week of the month. On November 4, the Sensex rose to 77,301.40 and the Nifty to 23,960.60, a fifth straight day of gains, with foreign buying and easier crude oil prices cited as the reasons, and the markets opened about 2 percent higher today i.e. on November 5 after the US midterm election outcome and a sharp fall in crude. Many investors now ask the natural question. Is this the start of a lasting return of foreign money, and what usually changes first before it happens? ... Read More

2 min read | Nov 04, 2026

FII Selling vs DII Buying: Who Really Moves the Market? | Diwali offer inside

In the first 15 sessions of October, FIIs were net sellers of ?51,466 crore, while DIIs were net buyers of ?59,110 crore. Many investors ask how the market can hold up when foreigners sell so heavily, and why it has not recovered when domestic institutions buy so strongly. The two groups play different roles. Foreign investors react to global conditions such as US bond yields, the dollar, oil prices and the rupee. Domestic institutions invest a steady flow of Indian savings and now own more of the market than foreign investors do, which gives the market a cushion. A cushion limits a fall but does not prevent one. ... Read More

5 min read | Oct 31, 2026

Margin of Safety: How to Think About It When the Market Falls

When the market has been falling for weeks, a familiar thought appears in many investors. Prices are lower, so stocks must be cheaper, and cheaper must mean safer. The thought feels logical, but it mixes up two different things. A lower price is a fact. A margin of safety is a judgement about the gap between the price and the value of the business, and it can exist at a high price or fail to exist at a low one. ... Read More

4 min read | Oct 29, 2026

Free Float and Index Weight: Why a Giant New Listing May Have a Small Weight at First

When a very large company lists on the stock exchange, many investors assume that it will at once become one of the biggest names in the Nifty or the Sensex. Often it does not. A company worth many lakh crore rupees can enter the market with a small weight in the indices, and the reason is a term that most investors never look up, the free float. This article explains what free float is, how index weights are calculated, why a giant new listing can carry a small weight at first, and what this means for how you read the news about large listings and about your own stocks. ... Read More

4 min read | Oct 27, 2026

Holding or Selling After Listing: A Simple Framework for IPO Allottees

Once IPO shares reach your demat account, one question follows. Do you sell, or do you hold? Many investors decide on the morning of the listing, when excitement is high, and regret the decision later. If you were allotted shares in a recent IPO, you now face a question that every allottee faces. Do you sell on the listing day, or do you hold? Similar questions come up with every IPO, so this article gives you a method that you can use each time, and not only an opinion about one issue. The method is simple, and it works best if you decide before the listing day, when your head is calm. ... Read More

5 min read | Oct 27, 2026

How to Read IPO Subscription Data: Why QIB, NII and Retail Numbers Differ by Day and Time

During an IPO, the subscription number is the one figure that everybody quotes. A post says that the issue is subscribed 3 times on the first day, another says 2.4 times, and a third says that retail is only 0.7 times while institutions are at 9 times. Investors then ask which number is correct and what any of it means. The honest answer is that they can all be correct, because each one is a snapshot of a different category, at a different time, from a different source. This article explains what the subscription number actually measures, why the numbers for QIB, NII and retail differ so much by day and by time, and how to read them without being misled. ... Read More

3 | Oct 26, 2026

Anchor Investors, Price Band and Cut Off Price: How an IPO Application Works

An IPO has its own language. You hear about the anchor book, the price band, the cut off price, the lot size and the retail quota, and many investors apply without being sure what each of these means for their money. This is a good week to learn them, because the largest IPO in Indian history is open right now, and every term in this article can be seen in it. The issue is a Rs.30,213 crore fresh issue with a price band of Rs.1,065 to Rs.1,119 and a lot size of 12 shares, and it opens on October 21 and closes on October 23. In this article, we use the numbers from this issue as a worked example, without recommending it, and explain step by step how an IPO application works and what to check before you press the button. ... Read More

4 min read | Oct 23, 2026

How to Read a Mega IPO: What to Check in the Red Herring Prospectus Before You Apply

When a very large IPO is in the news, almost every number you see comes from a website, a social media or a message forwarded in a group, and very little comes from the company itself. The official source is a document called the Red Herring Prospectus, or RHP. It runs to several hundred pages, and for a mega IPO it can run to many more, so most investors never open it. You do not need to read every page. You need to know which sections matter, what to look for in each, and which numbers to compare. ... Read More

3 min read | Oct 23, 2026

When IPO Money Goes to Repay Debt: What It Means for New Shareholders

When you apply for an IPO, you usually think that your money will help the company grow. For a large number of IPOs, a big part of the money goes to the lenders of the company instead. A study of more than 200 SEBI filings, reported in December 2025, found that repaying debt was the largest use of money raised through fresh equity issues, at 29 percent, or ?34,441 crore, ahead of capital expenditure. The largest issue in the news right now follows the same pattern. It is an entirely fresh issue of ?30,213 crore, and up to ?27,500 crore, about 91 percent of the gross proceeds at the upper price band, is meant to repay or prepay borrowings of a material subsidiary. This article explains what it means when IPO money goes to repay debt, when it helps a new shareholder, when it does not, and what to check in the red herring prospectus before you apply. ... Read More

Why Banks Often Lead a Rebound

Rates, Flows and Index Weight

Trending Articles

Why Banks Often Lead a Rebound: Rates, Flows and Index Weight

When Foreign Investors Turn Buyers Again: What Usually Changes First

FII Selling vs DII Buying: Who Really Moves the Market? | Diwali offer inside

Margin of Safety: How to Think About It When the Market Falls

Free Float and Index Weight: Why a Giant New Listing May Have a Small Weight at First

Holding or Selling After Listing: A Simple Framework for IPO Allottees

How to Read IPO Subscription Data: Why QIB, NII and Retail Numbers Differ by Day and Time

Anchor Investors, Price Band and Cut Off Price: How an IPO Application Works

How to Read a Mega IPO: What to Check in the Red Herring Prospectus Before You Apply

When IPO Money Goes to Repay Debt: What It Means for New Shareholders

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Blogs

Why Banks Often Lead a Rebound

Rates, Flows and Index Weight

Trending Articles

Why Banks Often Lead a Rebound: Rates, Flows and Index Weight

When Foreign Investors Turn Buyers Again: What Usually Changes First

FII Selling vs DII Buying: Who Really Moves the Market? | Diwali offer inside

Margin of Safety: How to Think About It When the Market Falls

Free Float and Index Weight: Why a Giant New Listing May Have a Small Weight at First

Holding or Selling After Listing: A Simple Framework for IPO Allottees

How to Read IPO Subscription Data: Why QIB, NII and Retail Numbers Differ by Day and Time

Anchor Investors, Price Band and Cut Off Price: How an IPO Application Works

How to Read a Mega IPO: What to Check in the Red Herring Prospectus Before You Apply

When IPO Money Goes to Repay Debt: What It Means for New Shareholders

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