Sensex and Nifty continued their forward march on Thursday even as the foreign portfolio investors (FPIs) remained net sellers in the cash markets. Election victory of the ruling BJP in four out of five States turned the markets buoyant, brokers said.

Sensex gained 1.5 percent or 817 points to close at 55,464. The Nifty index gained by 1.53 percent or 249 points to close at 16594. FPIs sold stocks worth ₹1,981 crore in the cash markets while domestic institutional investors were net purchasers of stocks worth ₹9,45 crore.

Market players took comfort from the fact that the BJP will be forming a government in four States, which indicated that it would also be able to swing the 2024 national elections. Brokers say that stock market players like political stability at the center. Of the 2,127 stocks traded on Thursday, 1,457 advanced and 626 declined while the remaining closed flat.

India’s markets rose on Thursday despite the fact the global cues were not supportive. In Europe, the markets were trading lower between 0.4 per cent and 1.5 per cent. In the US, all the three major stock indices were trading lower by nearly 1 per cent. 

“Markets have witnessed a decent rebound however sustainability would depend on how the geopolitical situation pans out and its impact on crude oil,” said Ajit Mishra, VP Research, Religare Broking.

Rupee gains

 The rupee strengthened further on Thursday as the dollar weakened against major currencies in the wake of crude oil and other commodity prices easing amid signs that Russia may continue talks with Ukraine to deescalate the war. 

The rupee closed at 76.3050 per US dollar against the previous close of 76.56, up about 25 paise. Intraday, the rupee had tested a high of 76.07. 

In the last three trading sessions, the rupee has cumulatively rallied by 66 paise from Monday’s all-time closing low of 76.96 per USD. 

IFA Global, in a report, said some banks sold dollars on behalf of traders, who wanted to cover their existing bets placed in favour of the US dollar, thereby supporting sentiment for the Indian currency. 

Anindya Banerjee, VP, Kotak Securities, observed that USD-INR spot closed 25 paise lower at 76.30 on the back of long liquidation as sentiments improved due to fall in oil prices and strong show by BJP in state elections.  

“However, rupee is not out of the woods, as oil prices remain well supported above $100 on Brent. We expect a range bound play over the near term between 76 and 77 on spot,” he said. 

Meanwhile, Government securities’ (G-Secs) prices rose as crude oil prices came off, leading to expectations that the inflationary effect via the oil route will ease.  

Price of the 10-year benchmark G-Sec (coupon rate: 6.54 per cent) was up about 25 paise, closing at ₹98.0775 (previous close: ₹97.83). Yield of this paper softened about 4 basis points to close at 6.8095 per cent (6.8448 per cent).