Nifty, Sensex gain over 4% this week; broader markets climb up to 8%: Here's why

Indian equities after a subdued start tracking Asian markets swiftly gained for the fifth straight session as the IT index erased its losses. In the last 5 sessions, BSE 30-share Sensex has galloped 4 per cent, while the Nifty50 gained 4.35 per cent. Also, midcap and smallcap indices are up 7.62 per cent and 8 per cent, respectively.

Here's what has led to sharp changes in Indian markets:

FIIs make a comeback or selling pressure eases:

This week FIIs made a return and bought Indian shares for two days. In the previous session, FIIs turned net buyers and bought equities worth Rs 3,239 crore. Zee Business Anil Singhvi on the FII comeback said that it can be a gamechanger for D-Street.

Also Read: Anil Singhvi on FII buying: Nifty, Bank Nifty surge as Rs 9,000 crore flows in; What’s next for investors?

IT shares post recovery; unimpacted by Accenture's steady Q2 results:

After a steady Accenture earnings and morning meltdown, IT stocks posted sharp recovery. Global brokerage sees IT stocks to post significant recovery in the new fiscal year.

Rupee's sharp gains also aid improvement in sentiment:

As inflows into equities was robust, rupee also marked an eight-consecutive day of gain and rose to its eighth-week high at the open.

Analysts point at likely bottoming in the market 

Some of the analysts believe that bottom has been reached in the market and valuations are no longer expensive. Given this, markets are now finding all its mojo despite relatively weak global cues amid escalating geo-political tensions as well as rising threat due to US President Trump's tariff-led turbulence.