Stock market rebounded on Wednesday, giving investors confidence in political stability and continuity.

Both the indices had plunged around 6% on Tuesday, posting their worst day in over four years in the previous session as a narrow win for BJP-led NDA in the Lok Sabha raised concerns about policy continuity.

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Sensex opened higher at 73,027.88, and touched an intraday high of 74,534.82. The index closed at 74,382.24, up 2,303.19 points, or 3.20%.

Nifty 50 opened higher at 22,128.35, climbed to a high of 22,670.40 in intraday trades. Pared some of its gains to close at 22,620.35, up 735.85 points, or 3.36%.

All the sectors were trading in the green, having gained between 2.3% to 5.8%. The Bank, Auto, Financial Services, FMCG and Metal indices had gained more than 4% each.

The broader market was up, with the BSE MidCap index gaining 4.48% and the BSE SmallCap index climbing 2.93%.

All of the stocks on the 50-stock Nifty 50, and on the 30-stock BSE Sensex were trading in green.

On Nifty, shares of IndusInd Bank, Adani Ports & SEZ, Hero MotoCorp, Mahindra & Mahindra and Tata Steel emerged as the top gainers.

While on the Sensex, IndusInd Bank, Tata Steel, Mahindra & Mahindra, and Bajaj Finance, were the top gainers.

Over the last two sessions, Mutual funds lost a whopping Rs 90,000 crore in market value.

As of June 3, mutual funds held shares worth over Rs 5.71 lakh crore in 84 state-run firms. After the unexpected election results, this value dropped to Rs 4.83 lakh crore.

As of June 4, mutual funds (MFs) held the largest stake in State Bank of India (SBI), followed by NTPC Ltd and Bharat Electronics Ltd.

Further, the FMCG stocks’ flight remained uninterrupted as investors sought safety in defensives following the surprising election outcome.

Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates Ltd, said, “Technically, the index has crossed the hurdle of the 100-Day Exponential Moving Average (100-DEMA) and formed an insider bar candlestick pattern on a daily scale. The 100-DEMA is placed near 22,050 levels. As long as the index holds above 22,050, bullish momentum will continue.”

“On the upside, 23,000 and 23,350 will act as resistance in the short term. The Bank Nifty index opened on a positive note and remained bullish amid volatility, finally settling the day on a positive note at 49,055 levels,” he added.

Global shares rose on Wednesday and the dollar steadied with a European Central Bank policy meeting coming into focus following soft US labour market data that firmed up bets of a September rate cut by the Federal Reserve.