Updated May 24th, 2024 at 10:24 IST

Nifty surges past 23,000 for first time led by financials, RBI's record dividend payout

BSE Sensex climbed 164.24 points to a record high of 75,582.28 and the broader NSE Nifty 50 rose 37 points to a record high of 23,004.05 during early trade.

Reported by: Business Desk
Stock market news | Image:Republic
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Markets at record high: Benchmark indices opened on a flat-to-bearish note today taking cues from weak global sentiments after robust US economic data dimmed hopes of an early Fed rate cut. However, the indices gained on rising speculation of a stability in the government post the ongoing elections, and a record dividend payout by the Reserve Bank of India (RBI) to the government.

BSE Sensex climbed 164.24 points to a record high of 75,582.28 and the broader NSE Nifty 50 rose 37 points to a record high of 23,004.05 during early trade on Friday.

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The RBI on Wednesday announced its decision to declare its highest-ever dividend of Rs 2.11 lakh crore to the government. According to economists, this move would reduce the fiscal deficit burden on the government and make India an attractive investment destination.

Among the key gainers driving this surge in the Sensex were prominent firms including Bajaj Finance, Larsen & Toubro, Tata Steel, State Bank of India, HDFC Bank, and Bharti Airtel. However, Mahindra & Mahindra, Tata Consultancy Services, Maruti, and JSW Steel were among the laggards during the early trading session.

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After a period of offloading equities, Foreign Institutional Investors (FIIs) turned buyers on Thursday, injecting enthusiasm into the market by purchasing equities worth Rs 4,670.95 crore, as per exchange data.

The outcome of the ongoing general elections, scheduled to be announced on June 4, continues to be a focal point for investors, contributing to the prevailing optimism in the market.

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However, Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, were trading lower, mirroring a negative sentiment prevalent on Wall Street, which closed in the red on Thursday.

Meanwhile, the global oil benchmark, Brent crude, saw a marginal increase of 0.05 per cent, reaching $81.40 a barrel.

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Commenting on the market dynamics, Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., stated, "Yesterday, Nifty neared the 23,000 mark, driven by investor optimism about the current regime's continuation in the upcoming general elections."

With approximately two weeks remaining until the Lok Sabha poll results are revealed, both the Sensex and Nifty exhibited remarkable gains, surging over 1.6 per cent to achieve lifetime high levels during Thursday's trading session. The BSE Sensex reclaimed the 75,000 level, concluding at an all-time peak of 75,418.04, registering a surge of 1,196.98 points or 1.61 per cent. Likewise, the NSE Nifty approached the 23,000 mark, closing at 22,967.65 after an impressive gain of 369.85 points or 1.64 per cent.

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(With PTI inputs.)

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Published May 24th, 2024 at 09:53 IST