Nifty hits record high as Sensex surges over 600 points amid RBI dividend boost
PTC Web Desk: Nifty50 reached a record high during Thursday’s trading session, while Sensex surged over 600 points as Dalal Street shrugged off recent volatility. The Nifty50 climbed nearly 1% to achieve a lifetime high of 22,806.20, and the Sensex reached a day's high of 74,880.11.
Most broader market indices experienced a strong rally during intraday trade, bolstered by gains in heavyweight stocks. Despite this, volatility also increased, rising above 1% during the session. The mid-market rally was driven by financial, banking, and information technology stocks, as reflected by gains in Nifty IT, Nifty Financial Services, and Nifty Bank. Additionally, Nifty Auto rose over 1% due to strong momentum on Dalal Street.
The top five gainers on the Nifty50 were Adani Enterprises, Axis Bank, L&T, Adani Ports, and M&M. Conversely, the top laggards were Sun Pharma, Power Grid, Hindalco, Coal India, and NTPC.
The broader rally on Dalal Street followed the Reserve Bank of India’s (RBI) announcement of a record dividend payout of Rs 2.11 lakh crore to the government, significantly higher than earlier predictions.
This announcement led to a rebound in shares of financial and banking companies, fueled by optimism regarding an improvement in the fiscal deficit.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, told Reuters that the reduction in the fiscal deficit is the most significant positive factor for the markets today.
- With inputs from agencies
