The Indian stock market on Thursday, May 23, 2024 hit a fresh record high after a roller-coaster ride this month, with highs and lows.
The 30-share BSE Sensex closed at 75,418.04, up by 1196.98 points or 1.61 per cent. Meanwhile, the NSE Nifty ended the day at 22,967.65, up 369.85 points or 1.64 per cent, achieving an all-time high.
The Nifty Bank gained 986.65 points or 2.06 per cent at 48,768.60.
M&M was the top gainer in the Sensex pack, surging over 3.51 per cent, followed by LT, Axis Bank, Maruti, and UltraTech Cement. On the other hand, NTPC, PowerGrid, and Sun Pharma were among the laggards.
In the Morning session, Sensex opened at 74,253.53, and Nifty at 22,614.10.
What are the reason behind the market surge?
The major reason for the surge is the Reserve Bank of India (RBI) announcing a record-breaking dividend of Rs 2.11 lakh crore on Wednesday, May 22. This hefty sum, much higher than the anticipated Rs 1 lakh crore, is expected to significantly help in managing the country's fiscal deficit.
Indices End Day In Green | Image: Wikipedia (Representative)
Moreover, market experts are buzzing with excitement over this unexpected windfall from the RBI. Many had been projecting a much lower dividend, so the news has come as a pleasant surprise. With this substantial injection of funds, the government now has more room to maneuver in its budgetary planning.
Adding to the positive sentiment in the market, foreign portfolio investors (FPIs) have scaled back their selling activities in recent days. After offloading stocks worth a substantial Rs 38,186 crore in May, FPIs have shown a decrease in selling, with net sales totaling Rs 1,813 crore over the past five trading sessions.
Another reason contributing to the market's optimism is the decline in the US 10-year yield. After hitting a peak of 4.73 percent a month ago, the yield has dropped to 4.43 percent. This easing of yields suggests a more favorable environment for investment.
