Indian Stock Market Hits Record Highs on Strong Buying Interest
The Indian stock market witnessed a surge in buying interest on Thursday, May 23, leading the benchmarks, the Sensex and the Nifty 50, to reach fresh record high levels. The Nifty 50 opened at 22,614.10 and soared 1.6% to hit a new high of 22,959.70, while the Sensex opened at 74,253.53 and also jumped 1.6% to reach an intraday high of 75,407.39.
By mid-afternoon, the Sensex was up 1.30% at 75,182, and the Nifty 50 was up 1.33% at 22,898. The Nifty Midcap index and the Smallcap index 100 also saw gains of 0.30% and 0.05%, respectively, at that time.
Several key factors were attributed to the market’s strong performance. Easing election-related jitters, with the market anticipating political stability post the Lok Sabha elections, was one of the main drivers. Experts highlighted that the Nifty hitting a new record high is a positive sign of political stability and a healthy market rally.
Additionally, macro factors such as the Reserve Bank of India’s announcement of a record ₹2.11 lakh crore dividend to the Centre for FY24 boosted market sentiment. This dividend is expected to help the government meet its fiscal deficit target for FY25. The decline in crude oil prices also contributed to the positive market sentiment.
Gains in banking heavyweights like HDFC Bank, ICICI Bank, and Axis Bank, along with strong buying by domestic investors, further fueled the market’s upward trajectory. Technical factors, such as the Nifty 50 crossing crucial resistance levels and the formation of a strong support base, also played a role in the market’s bullish trend.
Overall, the Indian stock market’s performance on Thursday reflected a combination of positive factors driving investor confidence and market optimism. Investors are advised to consult certified experts before making any investment decisions.
