Sensex Surges 1,619 Points on Foreign Funds Influx

Image for: Sensex Surges 1,619 Points on Foreign Funds Influx

📷 Image Credits: The Times of India

On June 8, 2024, the Indian stock market witnessed a significant surge as the Sensex jumped 1,619 points, driven by increased investments from foreign funds. With the BJP-led alliance set to be sworn in, investors on Dalal Street are showing renewed confidence, leading to a revival of the bull rally. This surge comes as a positive sign for the Indian economy and the overall investor sentiment.

The rally on Friday was further fueled by positive announcements in the RBI’s credit policy, which forecasted higher growth for FY25. Additionally, the timely arrival of monsoon rains and expectations of favorable inflation trends have boosted investor optimism. The end of election uncertainties and the expected formation of the NDA government have further contributed to the positive market sentiment.

Foreign funds played a crucial role in supporting the market rally, with a net inflow of Rs 4,391 crore recorded, while domestic funds were net sellers. This influx of foreign funds added Rs 7 lakh crore to investor wealth, with BSE’s market capitalization reaching Rs 429.5 lakh crore.

Market players observed a significant reduction in volatility during the session, with India VIX hitting a one-month low of 16. This decrease in anxiety among investors indicates growing confidence in the new government’s formation and future market stability.

Looking ahead, analysts predict that a mix of global and local factors will continue to drive the market. The recent interest rate cut by the European Central Bank has raised hopes for similar actions by the US Fed, while attention will also be focused on the allocation of key cabinet portfolios in the upcoming Budget. The positive market momentum is expected to persist, supported by ongoing reforms and investor optimism.