Sensex surges for 2nd day as BJP-led coalition govt seen

MUMBAI: Across-the-board buying with domestic fund in the lead took the sensex up by 692 points to 75,075 points on Thursday. With the BJP-led alliance finally setting its house in order to form the next govt, volatility on Dalal Street moderated for the second consecutive session. Strong selling by foreign funds, however, remains a wprry for traders and investors on Dalal Street, market players said.
The day’s session opened on a positive note with the sensex up about 700 points.The index dipped mid-session because of profit-booking but buying at the end of the day helped it close near the day’s high. Domestic funds were net buyers at Rs 3,718 crore while foreign portfolio investors were net sellers at Rs 6,868 crore, BSE data showed. So far in June, FPIs have net sold Indian stocks worth about Rs 14,900 crore, combined data from CDSL and BSE showed.
According to Siddhartha Khemka of Motilal Oswal Financial Services, the domestic market, despite being volatile in a broad range, finally ended in the green for a second straight day as investors have begun to digest the outcome of the Lok Sabha election results. Investors heaved a sigh of relief after two key allies of BJP pledged their support to form a govt under PM Narendra Modi.

“Even global factors contributed to today’s rally as the hopes revived for rate cut possibility in US Fed’s Sept meet, after weaker than expected jobs data. All eyes will be on government formation this weekend along with the ECB meet (later in the day) and RBI policy outcome and commentary (on Friday),” Khemka said.
In Thursday’s session, of the 30 sensex stocks, 23 closed with gains. In the broader market, compared to nearly 3,000 gainers, 878 closed lower.
The day’s session added about Rs 8.4 lakh crore to investors’ wealth with BSE’s market capitalisation now at Rs 422.5 lakh crore, ETIG data showed.