Sensex, Nifty at record high: Key factors behind bull run

sensex, nifty at record high: key factors behind bull run

Sensex, Nifty at record high: Key factors behind bull run

Benchmark stock market indices witnessed a bull run on Thursday as the S&P BSE Sensex and NSE Nifty50 soared to all-time highs.

The Sensex touched a lifetime high of 75,407.39, while the Nifty50 also surged to a lifetime high of 22,959.70, up over 300 points during the session.

By 3:13 pm, the Sensex was up by 1,236.21 points, standing at 75,457.27, while the Nifty50 surged by 381 points, reaching 22,978.80.

Vishnu Kant Upadhyay, Assistant Vice President - Research and Advisory at Master Capital Services Ltd said that the stock market saw a bull run, buoyed by significant gains in banking and technology heavyweights.

The top five gainers on the Nifty50 were Adani Enterprises, Axis Bank, L&T, Adani Ports and M&M. On the other hand, the top drags were Sun Pharma, Power Grid, Hindalco, Coal India and NTPC.

The surge on Dalal Street followed the Reserve Bank of India (RBI)'s announcement of a record dividend payout of Rs 2.11 lakh crore to the government, surpassing earlier predictions.

"This dividend payout is expected to assist the government in curbing its fiscal deficit and boosting capital expenditure. Additionally, the recent drop in crude oil prices by nearly 4% this week has raised hopes of a decline in US inflation rates," said Upadhyay.

He further added that this potential dip in inflation might lead the US monetary authorities to cut the key benchmark rate earlier than expected.

Santosh Meena, Head of Research at Swastika Investmart Ltd, said, "The Nifty index surged to a record high following the RBI's announcement of a substantial Rs 2.1 lakh crore dividend to the government. This is a significant macroeconomic boost for the market, impacting the fiscal deficit and bond yields directly."

"The infusion of funds is comparable to an indirect interest rate reduction for the economy, likely resulting in lower bond yields. As numerous investment instruments are tied to government bond yields, this reduction is anticipated to have a broad positive impact across financial markets. The enhanced fiscal position could also lead to upgrades in India's economic prospects," Meena elaborated.

Looking forward, Meena predicted further expansion for the Nifty index, with an immediate target of 23,000 on the horizon and the potential to reach 24,000 as election outcomes draw near.

However, he cautioned that while large-cap stocks are expected to perform well, mid-cap and small-cap stocks may lag behind from this point onward.

OTHER NEWS

2 hrs ago

Amid declining volatility and lack of fresh triggers: here is what the market experts suggests for stock markets, FIIs, Crude and Gold?

2 hrs ago

How ‘Melodi’ is the flavour of G7, but apart from that there’s anxiety and uncertainty

2 hrs ago

NEET UG 2024 Controversy: AISA Announces Nationwide Student Strike On June 19-20

2 hrs ago

Asaduddin Owaisi calls UAPA 'ruthless' amid Arundhati Roy case: 'If Modi 3.0 was expected to learn from election...'

2 hrs ago

10 Signs You’re Dating An Exceptional Man

2 hrs ago

Suresh Gopi clarifies 'mother of India' reference

2 hrs ago

'Learning the Art of Discipline from Rohit Sharma': Shubman Gill's Latest Social Media Post Goes Viral

2 hrs ago

Decisions not taken by me: Om Birla on LS Speaker

2 hrs ago

AUS vs SCO: Mitchell Starc slams media for blowing Hazlewood comments 'out of proportion'

2 hrs ago

Vijay Sethupathi shares interesting details from 'Viduthalai 2'!

2 hrs ago

Who is Lt Gen Upendra Dwivedi, the next Army chief succeeding Gen. Manoj Pande?

2 hrs ago

Kamal Haasan Meets, Congratulates Thalavan Team

2 hrs ago

The Taste by Vir Sanghvi: The stark reality behind India's expensive restaurants

2 hrs ago

Chandu Champion Box Office Collection Day 2: Kartik Aaryan Starrer Biopic Shows Growth After Slow Start, Earns Rs 11 Crore

2 hrs ago

Ladies European Tour: Solid start in Italian Open puts Diksha in fourth place

2 hrs ago

Vande Bharat Sleeper trains to hit tracks soon! Ashwini Vaishnaw says it prioritise both ‘aesthetic appeal and functionality’

3 hrs ago

When Imran Khan called Aamir Khan 'political': 'You can make money by acting but you point out injustice in society...'

3 hrs ago

2024 New BMW 5 Series LWB First Look, Interior And Features

3 hrs ago

D-Street Dons! Massive Rs 85,582 cr jump in market cap of 5 of top-10 largest firms; LIC leads race

3 hrs ago

Indo-China Relation: Four Years Of Galwan Clash, Take A Look Back At The Series Of Action | ABP News

3 hrs ago

Indian banks are better placed with strong balance sheet, low NPAs and higher profits: CLSA

3 hrs ago

"We were just terrible...": Australia's Starc on team's fielding after win over Scotland

3 hrs ago

"Try to enjoy it and...": World No. 1 Jannik Sinner discloses "mental advice" Federer gave him in Halle

3 hrs ago

Watch: Mohan Majhi takes oath as Odisha's new Chief Minister

3 hrs ago

India skipper Harmanpreet Kaur wins toss, opts to bat first against SA in first ODI

3 hrs ago

Wasim Akram takes a jibe at Babar Azam’s men: ‘Congratulations to the USA… For Pakistan, what’s the plan? EK 601 to Dubai, to their respective cities’

3 hrs ago

VFX Revolution - How Munjya, Godzilla x Kong, and Kingdom of the Planet of the Apes are ruling the box office

3 hrs ago

IT, Automobile Hub, No Major Airport: Guess This Indian City From Its 1928 Photo

3 hrs ago

China issues high temperature alert amid sweltering heat and severe flood warnings

3 hrs ago

Team USA's Super 8 qualification rings in trouble for Saurabh Netravalkar, juggling best of both worlds? Netizens muse

3 hrs ago

Rahul Gandhi joins EVM debate after Elon Musk flags hacking risk

3 hrs ago

Hyundai IPO to shatter all records? India’s 2nd largest car maker plans Rs 25,000 cr issue

3 hrs ago

Mcap of Five of Top-10 Most Valued Firms Jumps Rs 85,582 Crore; LIC Biggest Gainer

3 hrs ago

Dividend Stocks June 2024: Tata Steel, L&T, HDFC AMC among stocks to trade ex-dividend next week – Full List

3 hrs ago

Minimalist designs and multifunctional furniture are the latest trends: Gauri Khan

3 hrs ago

UK elections: Polls predict 'electoral extinction' for PM Sunak's Conservatives

3 hrs ago

Punjabi NRI thrashed in Himachal over parking dispute, political leaders alleges link with Kangana Ranaut slap case

3 hrs ago

The Great Indian Kapil Show: Here's why Archana Puran Singh's kursi is in danger; says 'Mirchi laag gayi. Abhi mera agla season khatrein main hain'

4 hrs ago

Dharmendra Pradhan on NEET Row: NTA officials won't be spared if found guilty

4 hrs ago

Neetu Kapoor wishes son Ranbir Kapor and late husband Rishi Kapoor on Father's Day