Raging bulls of India: D-Street dances to RBI record
India's benchmark indices soared to fresh all-time highs on Thursday as the Reserve Bank of India's larger-than-expected dividend payment to the government prompted traders to cover some of their bearish bets. Receding uncertainty over the BJP's performance in the general elections also bolstered sentiment, with the NSE Nifty ending a whisker away from 23,000.
The key index closed at a record 22,967.65, up 369.85 points or 1.64%, after hitting a peak of 22,993.60 during trade. The BSE Sensex rose 1,196.98 points, or 1.61%, to end at 75,418.04.
The market cap of all BSE-listed companies hit an all-time high of ₹420.22 lakh crore, or $5.05 trillion.
«There was short covering today as RBI announced a record dividend payout while hopes of favourable general election outcome seem to be getting stronger,» said Ajay Menon, managing director and CEO, broking and distribution, Motilal Oswal Financial Services. Elections end on June 1 with votes being counted on June 4.
Fear Gauge Dips a Tad
The RBI announced a dividend of ₹2.1 lakh crore for FY24 to the government — the highest ever — against market expectations of about ₹1 lakh crore. The payout bodes well for government coffers and bonds as the funds will help reduce the FY24 fiscal deficit and could result in treasury yields softening.
«The market reacted favourably to RBI's dividend payment to the government, which will lead to strong fundamentals for the government to continue, and will have a cascading effect, positively impacting the fiscal balance movement and
