The bullish trend in the market continues as the 30-share BSE Sensex surged by 696.46 points to 75,078.70 in early trade, marking a second consecutive day of gains.
The buoyant start on Thursday follows the unanimous election of Narendra Modi as the leader of the BJP-led National Democratic Alliance (NDA). This decision has instilled confidence in investors, leading to a continuation of the previous day's sharp rally.
The NSE Nifty also witnessed an upward trend, climbing by 179.15 points to reach 22,799.50.
Notable gainers among the 30 Sensex companies include NTPC, State Bank of India, Power Grid, Tata Steel, Tech Mahindra, and HCL Technologies. However, Hindustan Unilever, Nestle, Sun Pharma, and Asian Paints lagged behind.
Narendra Modi's unanimous election as the leader of the NDA signals his historic third consecutive term as prime minister, following the NDA's victory in 293 seats in the Lok Sabha polls.
In global markets, Tokyo and Hong Kong traded with gains, while Shanghai quoted lower. US markets closed in positive territory on Wednesday.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the favourable global construct with the rising possibility of rate cuts by the Fed. However, despite the positive outlook, FIIs continue to sell on high valuations in India, especially compared to the relatively cheap valuations of Chinese stocks.
While there is political stability in the near term, ongoing political developments are expected to influence market sentiment.
In the commodity market, global oil benchmark Brent crude climbed to USD 78.71 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,656.26 crore on Wednesday.
The market's resilience is evident as it bounces back from Tuesday's decline, with the BSE Sensex surging by 2,303.19 points or 3.20 per cent, and the Nifty climbing by 735.85 points or 3.36 per cent on Wednesday, marking a positive shift in investor sentiment.