The sensex increased 692 points to 75,075 points on Thursday as a result of widespread purchasing, with domestic funds leading the way. For the second session in a row, Dalal Street's unrest subsided as the BJP-led alliance finally prepared to create the new government. However, market participants stated that strong selling by foreign funds continues to be a concern for Dalal Street dealers and investors.
The sensex was up around 700 points at the start of the day's session, which was encouraging. Midway through the session, profit-booking caused the index to decline, but closing close to the day's high was achieved by purchasing at the conclusion of the day. According to BSE statistics, international portfolio investors were net sellers at Rs 6,868 crore, while domestic funds were net purchasers at Rs 3,718 crore. According to combined statistics from CDSL and BSE, FPIs have net sold Indian equities worth over Rs 14,900 crore so far in June.
Despite being volatile across the board, the domestic market closed positively for a second day in a row, according to Siddhartha Khemka of Motilal Oswal Financial Services, as investors started to process the results of the Lok Sabha election. Investors breathed a sigh of relief as the BJP's two main allies announced their intention to back PM Narendra Modi in forming a government.
"Today's rise was influenced by global forces as well, as expectations for a rate drop at the US Fed's September meeting were rekindled following the release of worse than anticipated jobs statistics. This weekend's major events are expected to be the formation of the government, the ECB meeting later in the day, and the conclusion and analysis of the RBI policy on Friday, according to Khemka.
Of the 30 sensex equities that were traded on Thursday, 23 ended the day higher. In the overall market, 878 stocks ended the day down, as opposed to over 3,000 gains. With the BSE's market capitalization now at Rs 422.5 lakh crore, the day's session increased investors' wealth by almost Rs 8.4 lakh crore, according to ETIG statistics.
