D-Street: India’s Raging Bull: D-Street dances to the RBI record.
The main index closed up 369.85 points, or 1.64 percent, at 22,967.65, after hitting a high of 22,993.60 during trading. The BSE Sensex rose 1,196.98 points (1.61%) to close at 75,418.04.
The market capitalization of all BSE listed companies hit an all-time high of ₹420.22 lakh crore, or $5.5 trillion.
“There was a brief covering today as RBI announced record dividend payout, but hopes for a favorable general election outcome seem to be growing stronger,” said Ajay Menon, managing director and CEO, broking and distribution, Motilal Oswal Financial Services. The election ends on June 1 and votes will be counted on June 4.
agency Fear gauge decreases slightly
RBI announced dividend of ₹2.1 lakh crore to the government in FY24. This is an all-time high compared to market expectations of around ₹1 lakh crore. This payment bodes well for government coffers and bonds as it could help reduce FY24 fiscal deficit and weaken Treasury yields.
A Balasubramanian said, “Markets have reacted favorably to RBI’s dividend payout to the government, which will lead to strong fundamentals for the government to sustain itself and will have a cascading effect, which will have a positive impact on shifting fiscal balance and reducing borrowing costs.” said. , MD and CEO of Aditya Birla Sun Life AMC. “The roadmap to reduce the fiscal deficit currently looks positive and India may see its ratings upgraded globally.”
Adani Group shares led gains on Nifty. Adani Enterprises surged 8.2% and Adani Ports surged 4.8%. Bank and auto stocks were the other top gainers. Nifty Bank and Nifty Auto indices rose 2.1% and 2.3% respectively. Foreign portfolio investors (FPIs) bought shares worth a net worth of ₹4,671 crore on Thursday. As of May, net selling amounted to 210 billion rupees.
The volatility index (VIX), a market fear index, fell 0.4% to 21.38. Analysts said the moderate decline meant risk sentiment had not been completely erased. It has surged 108% in the past month as uncertainty about the election outcome unsettled traders. “Given the big event of election results and the fact that India VIX is still hovering around the 20 level, volatility is likely to remain high in the near term,” Menon said.
Despite the high VIX levels, analysts said technical indicators point to continued bullish momentum.
“The bias remains very strong and could sustain a positive move till the end of the month,” said Vaishali Parekh, vice-president, technical research, Prabhudas Lilladher. Parekh has a target of 23,200-23,700 for Nifty.
