Stock market news: Benchmark indices opened on flat-to-bearish note today, but quickly erased losses amid a surge in financial, information technology stocks.

The blue-chip S&P BSE Sensex surged 1.72 per cent to hit a record high of 75,499.91 and the broader NSE Nifty 50 rose 1.75 per cent to touch an all-time high of 22,993.6 during the day's trade.

"Market sentiment, particularly in the banking sector, improved substantially following the Reserve Bank of India's announcement of a Rs 2.11 lakh crore dividend payout to the government for FY24, which exceeded market expectations. This dividend payout is expected to help the government reduce its fiscal deficit and increase capital expenditure. Additionally, the continuous decline in crude oil prices, which fell by nearly 4 per cent this week, has raised expectations of a reduction in the US inflation figures. This potential mitigation of inflation could prompt the US monetary authorities to lower the key benchmark rate sooner than anticipated", said Vishnu Kant Upadhyay, Assistant Vice President - Research and Advisory at Master Capital Services Ltd.

Both indexes recorded their best day since March 1, when unexpectedly strong economic growth data propelled the markets to new highs. This marks the sixth consecutive session of gains for the blue-chip indexes, their longest winning streak since early December.

"Infusion of funds is akin to an indirect rate cut for the economy and can broadly have a positive impact across the financial markets," said Santosh Meena, research head at Swastika Investmart.

Financials, the heaviest-weighted sector in the Nifty 50 index, ended 1.9 per cent higher. Banks, state-owned lenders, and private banks added between 1.7 per cent and 2.1 per cent.

"Market sentiment, particularly in the banking sector, improved substantially following the RBI's record dividend payout to the government," said Vishnu Kant Upadhyay, assistant vice president of research and advisory at Master Capital Services. "The dividend payout is expected to help the government reduce its fiscal deficit and increase capital expenditure."

Top Nifty 50 gainer Adani Enterprises surged 7.84 per cent on speculation of its inclusion in the Sensex during the semi-annual rebalancing of BSE indexes on Friday, as reported by the Economic Times, citing IIFL Alternative Research. Adani Ports also jumped 4.73 per cent, making it the second biggest gainer on the index.

However, Sun Pharmaceutical Industries fell 2.87 per cent, making it the top Nifty 50 loser, after the drug maker missed its March-quarter revenue estimates. Sun Pharma's decline dragged down the pharma index by 0.52 per cent, the only loser among the 13 major sectors.

(With Reuters inputs.)