The BSE benchmark rose 267.75 points or 0.36% to end at 74,221.06 on May 22. The NSE Nifty index gained 68.75 points or 0.31% to end at 22,597.80. File
Benchmark equity indices rose on May 23 with Sensex and Nifty touching lifetime highs after the RBI approved the highest-ever dividend of Rs 2.11 lakh crore to the government and supported by purchases of blue chips Reliance Industries and HDFC Bank.
The 30-share BSE Sensex is back at 75,000 levels. It rose 951.22 points, or 1.28%, to reach its all-time high of 75,172.28.
The NSE Nifty index rose 308.45 points or 1.36% to 22,906.25, a record high.
Among the Sensex companies, Larsen & Toubro, Maruti, Mahindra & Mahindra, Axis Bank, IndusInd Bank, HDFC Bank, Bajaj Finserv, State Bank of India and Reliance Industries were the top gainers.
PowerGrid, Sun Pharma, NTPC and JSW Steel were left behind.
The Reserve Bank of India will pay a record dividend of Rs 2.1 lakh crore to the government for the fiscal ended March 31, more than double the budgeted amount, helping boost revenues before the novel government takes office.
The RBI Board in its 608th meeting on May 22 approved the surplus transfer, the central bank said in a statement.
“The market today has positives and negatives. The biggest positive is the record dividend of Rs 2.11 lakh crore from the RBI to the government,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
This means that the government can reduce the budget deficit and raise infrastructure spending, he added.
“Brent crude price falling below $82 is positive for the Indian macroeconomy,” Vijayakumar said. Global price benchmark Brent crude fell 0.15% to $81.79 a barrel.
He noted that the minutes of the US Fed meetings, which indicate concerns about persistent inflation, are negative for stock markets.
In Asian markets, Tokyo was down, while Seoul, Shanghai and Hong Kong were down.
On May 22, Wall Street ended the session in the red.
“Nifty index rose to record high after Reserve Bank of India index [RBI] announced a substantial dividend of Rs 2.1 lakh crore to the government. This development is a significant macroeconomic positive for the market, with direct implications for the fiscal deficit and bond yields,” said Santosh Meena, head of research at Swastika Investmart Ltd.
According to stock exchange data, foreign institutional investors (FIIs) withdrew shares worth ₹ 686.04 crore on May 22.
The BSE benchmark rose 267.75 points or 0.36% to end at 74,221.06 on May 22. The NSE Nifty index gained 68.75 points or 0.31% to end at 22,597.80.
