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

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, indices gained on rising speculation of a stability in government post ongoing elections, and a record dividend payout by Reserve Bank of India (RBI) to government.

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

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

Among key gainers driving this surge in 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 laggards during early tring session.

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

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

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

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

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

With approximately two weeks remaining until Lok Sabha poll results are revealed, both Sensex and Nifty exhibited remarkable gains, surging over 1.6 per cent to achieve lifetime high levels during Thursday's tring session. BSE Sensex reclaimed 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, NSE Nifty approached 23,000 mark, closing at 22,967.65 after an impressive gain of 369.85 points or 1.64 per cent.

(With PTI inputs.)