look news india
New Delhi, May 23 (HS). The domestic stock market on Thursday showed a strong rise once again after April 10. Both the Sensex and Nifty index managed to reach their highest level till now. The Sensex jumped 1,341.56 points intra-day. The Nifty also jumped 416.15 points intra-day. In today's trading, the Nifty reached very close to the 23,000 points mark.
It is believed that the reasons behind today's record-breaking rise are mainly RBI's payment of highest ever dividend, excellent March quarter results of companies and the hope that the election results will be as expected, which has boosted the enthusiasm of the stock market. Has increased. Along with this, the domestic stock market was successful in reaching new highs due to buying in IT and banking sector shares, especially in large cap shares.
According to Prashant Dhami, Vice President of Dhami Capitals, this year the Reserve Bank has announced to give Rs 2.11 lakh crore as dividend to the Central Government. This dividend will help the Central Government to control the fiscal deficit. Due to this, the confidence in the market regarding controlling the fiscal deficit has strengthened. Along with this, this amount of dividend will also have a positive impact on the bond yield. Therefore, the stock market considered it as encouraging news and showed a rise today.
According to Prashant Dhami, along with these reasons, a major reason for the rise in the stock market is also the strong quarterly results of listed companies. Most of the listed companies have released their quarterly results as per market expectations, which has boosted the expectations of investors. Due to the recent bullish environment in the stock market, foreign institutional investors (FIIs) can also make a strong comeback. At present, foreign institutional investors have more than 65 percent short positions in the May series, but if the market continues to be bullish, they can start covering shorts to avoid losses, which can lead to an even greater rise in the market. Is.