MUMBAI: Local Buying Fuels Sensex Rally

The Sensex experienced a significant rally, driven by local buying for the second consecutive session, closing 610 points higher and surpassing the 74K mark. Over the last two sessions, the Sensex has added an impressive 1,350 points, marking a 1.9% increase. The NSE's Nifty followed a similar trajectory, closing 207 points up at 22,545 points.

Market Dynamics and Investor Sentiment

Despite opening sharply higher on Thursday, the Sensex faced a pullback due to profit-taking at higher levels, briefly dipping into the red. However, it regained strength throughout the session, closing at 74,340 points, up 0.8%. This surge added approximately Rs 4.5 lakh crore to BSE's market capitalisation, now standing at Rs 397.5 lakh crore.

Prashanth Tapse of Mehta Equities attributed the recent recovery to attractive buying opportunities at lower prices, highlighting the strong fundamentals of various sectors. However, he cautioned that the recovery could face disruptions due to ongoing nervousness among investors triggered by US President Donald Trump's tariff statements, which might lead to further selling.

Foreign vs. Domestic Fund Activity

The day's gains occurred despite foreign portfolio investors (FPIs) being net sellers, offloading Rs 2,377 crore worth of assets, while domestic institutions were net buyers, purchasing Rs 1,618 crore, as per BSE data.